Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Sientra, Inc. | |
Entity Central Index Key | 0001551693 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 49,291,645 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SIEN | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36709 | |
Entity Tax Identification Number | 205551000 | |
Entity Address, Address Line One | 420 South Fairview Avenue | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Santa Barbara | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 93117 | |
City Area Code | 805 | |
Local Phone Number | 562-3500 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 146,088 | $ 86,899 |
Accounts receivable, net of allowances of $3,185 and $2,428 at June 30, 2019 and December 31, 2018, respectively | 23,887 | 22,527 |
Inventories, net | 29,864 | 24,085 |
Prepaid expenses and other current assets | 4,017 | 2,612 |
Total current assets | 203,856 | 136,123 |
Property and equipment, net | 3,686 | 2,536 |
Goodwill | 4,878 | 12,507 |
Other intangible assets, net | 10,290 | 16,495 |
Other assets | 23,235 | 698 |
Total assets | 245,945 | 168,359 |
Current liabilities: | ||
Current portion of long-term debt | 18,144 | 6,866 |
Accounts payable | 14,600 | 13,184 |
Accrued and other current liabilities | 36,280 | 27,697 |
Legal settlement payable | 410 | |
Customer deposits | 11,579 | 9,936 |
Sales return liability | 7,020 | 6,048 |
Total current liabilities | 87,623 | 64,141 |
Long-term debt | 20,938 | 27,883 |
Deferred and contingent consideration | 364 | 6,481 |
Warranty reserve and other long-term liabilities | 21,847 | 2,976 |
Total liabilities | 130,772 | 101,481 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value – Authorized 10,000,000 shares; none issued or outstanding | ||
Common stock, $0.01 par value — Authorized 200,000,000 shares; issued 49,350,266 and 28,701,494 and outstanding 49,277,539 and 28,628,767 shares at June 30, 2019 and December 31, 2018 respectively | 493 | 286 |
Additional paid-in capital | 541,175 | 428,949 |
Treasury stock, at cost (72,727 shares at June 30, 2019 and December 31, 2018) | (260) | (260) |
Accumulated deficit | (426,235) | (362,097) |
Total stockholders’ equity | 115,173 | 66,878 |
Total liabilities and stockholders’ equity | $ 245,945 | $ 168,359 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances (in dollars) | $ 3,185 | $ 2,428 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 49,350,266 | 28,701,494 |
Common stock, shares outstanding | 49,277,539 | 28,628,767 |
Treasury stock, shares | 72,727 | 72,727 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 20,525,000 | $ 17,554,000 | $ 38,077,000 | $ 32,229,000 |
Cost of goods sold | 7,813,000 | 6,660,000 | 14,287,000 | 12,756,000 |
Gross profit | 12,712,000 | 10,894,000 | 23,790,000 | 19,473,000 |
Operating expenses: | ||||
Sales and marketing | 21,918,000 | 15,477,000 | 42,319,000 | 30,733,000 |
Research and development | 3,270,000 | 2,301,000 | 6,325,000 | 5,052,000 |
General and administrative | 11,814,000 | 10,014,000 | 25,289,000 | 19,514,000 |
Goodwill and other intangible impairment | 12,674,000 | 12,674,000 | ||
Total operating expenses | 49,676,000 | 27,792,000 | 86,607,000 | 55,299,000 |
Loss from operations | (36,964,000) | (16,898,000) | (62,817,000) | (35,826,000) |
Other income (expense), net: | ||||
Interest income | 269,000 | 40,000 | 573,000 | 80,000 |
Interest expense | (982,000) | (867,000) | (1,932,000) | (1,521,000) |
Other income (expense), net | 23,000 | (303,000) | 38,000 | (184,000) |
Total other income (expense), net | (690,000) | (1,130,000) | (1,321,000) | (1,625,000) |
Loss before income taxes | (37,654,000) | (18,028,000) | (64,138,000) | (37,451,000) |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Net loss | $ (37,654,000) | $ (18,028,000) | $ (64,138,000) | $ (37,451,000) |
Basic and diluted net loss per share attributable to common stockholders | $ (1.10) | $ (0.73) | $ (2.02) | $ (1.69) |
Weighted average outstanding common shares used for net loss per share attributable to common stockholders: | ||||
Basic and diluted | 34,290,073 | 24,761,117 | 31,709,067 | 22,202,565 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Treasury stock | Additional paid-in capital | Accumulated deficit |
Balance, beginning of year at Dec. 31, 2017 | $ 27,623 | $ 194 | $ (260) | $ 307,159 | $ (279,470) |
Balance, beginning of year (in shares) at Dec. 31, 2017 | 19,474,702 | 72,727 | |||
Stock-based compensation | 2,548 | 2,548 | |||
Employee stock purchase program (ESPP) | 391 | $ 1 | 390 | ||
Employee stock purchase program (ESPP) (in shares) | 62,491 | ||||
Vested restricted stock | $ 3 | (3) | |||
Vested restricted stock (in shares) | 271,936 | ||||
Shares withheld for tax obligations on vested RSUs | (1,296) | $ (1) | (1,295) | ||
Shares withheld for tax obligations on vested RSUs, shares | (92,760) | ||||
Net loss | (19,423) | (19,423) | |||
Balance, end of year at Mar. 31, 2018 | 9,843 | $ 197 | $ (260) | 308,799 | (298,893) |
Balance, end of year (in shares) at Mar. 31, 2018 | 19,716,369 | 72,727 | |||
Balance, beginning of year at Dec. 31, 2017 | 27,623 | $ 194 | $ (260) | 307,159 | (279,470) |
Balance, beginning of year (in shares) at Dec. 31, 2017 | 19,474,702 | 72,727 | |||
Net loss | (37,451) | ||||
Balance, end of year at Jun. 30, 2018 | 102,914 | $ 284 | $ (260) | 419,811 | (316,921) |
Balance, end of year (in shares) at Jun. 30, 2018 | 28,390,271 | 72,727 | |||
Balance, beginning of year at Mar. 31, 2018 | 9,843 | $ 197 | $ (260) | 308,799 | (298,893) |
Balance, beginning of year (in shares) at Mar. 31, 2018 | 19,716,369 | 72,727 | |||
Proceeds from follow-on offering, net of costs | 107,551 | $ 85 | 107,466 | ||
Proceeds from follow-on offering, net of costs (in shares) | 8,518,519 | ||||
Stock-based compensation | 3,138 | 3,138 | |||
Stock option exercises | 410 | $ 1 | 409 | ||
Stock option exercises (in shares) | 61,203 | ||||
Vested restricted stock | $ 1 | (1) | |||
Vested restricted stock (in shares) | 94,180 | ||||
Net loss | (18,028) | (18,028) | |||
Balance, end of year at Jun. 30, 2018 | 102,914 | $ 284 | $ (260) | 419,811 | (316,921) |
Balance, end of year (in shares) at Jun. 30, 2018 | 28,390,271 | 72,727 | |||
Balance, beginning of year at Dec. 31, 2018 | 66,878 | $ 286 | $ (260) | 428,949 | (362,097) |
Balance, beginning of year (in shares) at Dec. 31, 2018 | 28,701,494 | 72,727 | |||
Stock-based compensation | 3,772 | 3,772 | |||
Stock option exercises | 106 | 106 | |||
Stock option exercises (in shares) | 45,453 | ||||
Employee stock purchase program (ESPP) | 683 | $ 1 | 682 | ||
Employee stock purchase program (ESPP) (in shares) | 68,899 | ||||
Vested restricted stock | $ 7 | (7) | |||
Vested restricted stock (in shares) | 671,245 | ||||
Shares withheld for tax obligations on vested RSUs | (2,725) | $ (2) | (2,723) | ||
Shares withheld for tax obligations on vested RSUs, shares | (212,714) | ||||
Net loss | (26,484) | (26,484) | |||
Balance, end of year at Mar. 31, 2019 | 42,230 | $ 292 | $ (260) | 430,779 | (388,581) |
Balance, end of year (in shares) at Mar. 31, 2019 | 29,274,377 | 72,727 | |||
Balance, beginning of year at Dec. 31, 2018 | 66,878 | $ 286 | $ (260) | 428,949 | (362,097) |
Balance, beginning of year (in shares) at Dec. 31, 2018 | 28,701,494 | 72,727 | |||
Net loss | (64,138) | ||||
Balance, end of year at Jun. 30, 2019 | 115,173 | $ 493 | $ (260) | 541,175 | (426,235) |
Balance, end of year (in shares) at Jun. 30, 2019 | 49,350,266 | 72,727 | |||
Balance, beginning of year at Mar. 31, 2019 | 42,230 | $ 292 | $ (260) | 430,779 | (388,581) |
Balance, beginning of year (in shares) at Mar. 31, 2019 | 29,274,377 | 72,727 | |||
Proceeds from follow-on offering, net of costs | 107,734 | $ 200 | 107,534 | ||
Proceeds from follow-on offering, net of costs (in shares) | 20,000,000 | ||||
Stock-based compensation | 2,963 | 2,963 | |||
Vested restricted stock | $ 1 | (1) | |||
Vested restricted stock (in shares) | 88,454 | ||||
Shares withheld for tax obligations on vested RSUs | (100) | (100) | |||
Shares withheld for tax obligations on vested RSUs, shares | (12,565) | ||||
Net loss | (37,654) | (37,654) | |||
Balance, end of year at Jun. 30, 2019 | $ 115,173 | $ 493 | $ (260) | $ 541,175 | $ (426,235) |
Balance, end of year (in shares) at Jun. 30, 2019 | 49,350,266 | 72,727 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Cash flows from operating activities: | ||
Net loss | $ (64,138) | $ (37,451) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Goodwill impairment | 7,629 | |
Intangible asset impairment | 5,045 | |
Depreciation and amortization | 1,725 | 1,700 |
Provision for doubtful accounts | 845 | 489 |
Provision for warranties | 674 | 572 |
Provision for inventory | 790 | 709 |
Amortization of acquired inventory step-up | 106 | |
Amortization of right-of-use assets | 2,356 | |
Lease liability accretion | 927 | |
Change in fair value of warrants | (110) | 164 |
Change in fair value of deferred consideration | 9 | 18 |
Change in fair value of contingent consideration | 289 | 1,708 |
Change in deferred revenue | 270 | (161) |
Amortization of debt discount and issuance costs | 99 | 85 |
Stock-based compensation expense | 6,611 | 5,686 |
Loss on disposal of property and equipment | 20 | |
Payments of contingent consideration liability in excess of acquisition-date fair value | (630) | |
Changes in assets and liabilities: | ||
Accounts receivable | (2,206) | (6,343) |
Inventories | (6,445) | (2,405) |
Prepaid expenses, other current assets and other assets | (1,435) | (2,518) |
Insurance recovery receivable | 33 | |
Accounts payable | 2,256 | 4,230 |
Accrued and other liabilities | (5,416) | 1,643 |
Legal settlement payable | (410) | (1,000) |
Customer deposits | 1,643 | 602 |
Sales return liability | 972 | 976 |
Net cash used in operating activities | (48,630) | (31,157) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,056) | (160) |
Net cash used in investing activities | (2,056) | (160) |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 108,028 | 107,850 |
Proceeds from exercise of stock options | 106 | 410 |
Proceeds from issuance of common stock under ESPP | 683 | 391 |
Tax payments related to shares withheld for vested restricted stock units (RSUs) | (2,825) | (1,297) |
Gross borrowings under the Term Loan | 10,000 | |
Gross borrowings under the Revolving Loan | 8,436 | 12,109 |
Repayment of the Revolving Loan | (4,183) | (12,109) |
Payments of contingent consideration up to acquisition-date fair value | (370) | |
Deferred financing costs | (6) | |
Net cash provided by financing activities | 109,875 | 117,348 |
Net increase in cash, cash equivalents and restricted cash | 59,189 | 86,031 |
Cash, cash equivalents and restricted cash at: | ||
Beginning of period | 87,242 | 26,931 |
End of period | 146,431 | 112,962 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||
Cash and cash equivalents | 146,088 | 112,619 |
Restricted cash included in other assets | $ 343 | $ 343 |
Restricted Cash Noncurrent Asset Statement Of Financial Position Extensible List | us-gaap:OtherNoncurrentAssetsMember | us-gaap:OtherNoncurrentAssetsMember |
End of period | $ 146,431 | $ 112,962 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 1,831 | 1,347 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment in accounts payable and accrued liabilities | (339) | 1,741 |
Deferred follow-on offering costs in accounts payable and accrued liabilities | $ 294 | $ 299 |
Formation and Business of the C
Formation and Business of the Company | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. a. Formation Sientra, Inc. (“Sientra”, the “Company,” “we,” “our” or “us”), was incorporated in the State of Delaware on August 29, 2003 under the name Juliet Medical, Inc. and subsequently changed its name to Sientra, Inc. in April 2007. The Company acquired substantially all the assets of Silimed, Inc. on April 4, 2007. The purpose of the acquisition was to acquire the rights to the silicone breast implant clinical trials, related product specifications and pre-market approval, or PMA, assets. Following this acquisition, the Company focused on completing the clinical trials to gain FDA approval to offer its silicone gel breast implants in the United States. In March 2012, the Company announced it had received approval from the FDA for its portfolio of silicone gel breast implants, and in the second quarter of 2012 the Company began commercialization efforts to sell its products in the United States. The Company, based in Santa Barbara, California, is a medical aesthetics company that focuses on serving board-certified plastic surgeons and offers a portfolio of silicone shaped and round breast implants, scar management, tissue expanders, and body contouring products. In November 2014, the Company completed an initial public offering, or IPO, and its common stock is listed on the Nasdaq Stock Exchange under the symbol “SIEN.” b. The Company has engaged Vesta Intermediate Funding, Inc., or Vesta, a Lubrizol Lifesciences company, for the manufacture and supply of the Company’s breast implants. On March 14, 2017, the Company announced it had submitted a site-change pre-market approval, or PMA, supplement to the FDA for the manufacture of the Company’s PMA-approved breast implants at the Vesta manufacturing facility. On January 30, 2018, the Company announced the FDA has granted approval of the site-change supplement for the Company’s contract manufacturer, Vesta, to manufacture its silicone gel breast implants. In support of the move to the Vesta manufacturing facility, the Company also implemented new manufacturing process improvements which, in consultation with the FDA, required three (3) additional PMA submissions. In addition to approving the manufacturing site-change PMA supplement, the FDA approved the Company’s three (3) process enhancement submissions on . c. Follow-On Offering On May 7, 2018, the Company completed an underwritten follow-on public offering of 7,407,408 shares of its common stock at $13.50 per share, as well as 1,111,111 additional shares of its common stock pursuant to the full exercise of the over-allotment option granted to the underwriters. Net proceeds to the Company were approximately $107.6 million after deducting underwriting discounts and commissions of $6.9 million and offering expenses of approximately $0.5 million. On June 7, 2019, the Company completed an underwritten follow-on public offering of 17,391,305 shares of its common stock at $5.75 per share, as well as 2,608,695 additional shares of its common stock pursuant to the full exercise of the over-allotment option granted to the underwriters. Net proceeds to the Company were approximately $107.7 million after deducting underwriting discounts and commissions of $6.9 million and offering expenses of approximately $0.4 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. a. Basis of Presentation The accompanying unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 14, 2019, or the Annual Report. The results for the three and six months ended June 30, 2019 are not necessarily indicative of results to be expected for the year ending December 31, 2019, any other interim periods, or any future year or period. b. Liquidity Since the Company’s inception, it has incurred significant net operating losses and the Company anticipates that losses will continue in the near term. The Company expects its operating expenses will continue to grow as they expand operations. The Company will need to generate significant net sales to achieve profitability. To date, the Company has funded operations primarily with proceeds from the sales of preferred stock, borrowings under term loans, sales of products since 2012, and the proceeds from the sale of common stock in public offerings. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of June 30, 2019, the Company had cash and cash equivalents of $146.1 million. Since inception, the Company has incurred recurring losses from operations and cash outflows from operating activities. The continuation of the Company as a going concern is dependent upon many factors including liquidity and the ability to raise capital The Company received FDA approval of their PMA supplement on April 17, 2018 and was then able to access a $10.0 million term loan pursuant to an amendment to the credit agreement with MidCap Financial Trust, or MidCap. In addition, in February 2018, the Company entered into an At-The-Market Equity Offering Sales Agreement with Stifel, Nicolaus & Company, Incorporated, or Stifel, as sales agent pursuant to which the Company may sell, from time to time, through Stifel, shares of our common stock having an aggregate gross offering price of up to $50.0 million. . Further, on after deducting underwriting discounts and commissions and other offering expenses. On July 1, 2019, the Company entered into certain credit agreements with Midcap Financial Trust pursuant to which the Company repaid its existing indebtedness under its Loan Agreement and the outstanding commitment fee was cancelled. See Note 15 – Subsequent Events for further discussion. The Company believes that its cash and cash equivalents will be sufficient to fund its operations for at least the next 12 months. , the Company may need to raise additional capital in the future through the sale of equity securities and incremental debt financing. c. Use of Estimates The preparation of the condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. d. Recent Accounting Pronouncements Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update, or ASU, 2016-02, Leases (Topic 842). This ASU requires a company to recognize lease assets and liabilities arising from operating leases in the statement of financial position. This ASU does not significantly change the previous lease guidance for how a lessee should recognize the recognition, measurement, and presentation of expenses and cash flows arising from a lease. Additionally, the criteria for classifying a finance lease versus an operating lease are substantially the same as the previous guidance. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption was permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements, amending certain aspects of the new leasing standard. The amendment allowed an additional optional transition method whereby an entity records a cumulative effect adjustment to opening retained earnings in the year of adoption without restating prior periods. The Company adopted Topic 842 on January 1, 2019 electing the package of practical expedients permitted under the transition guidance, which allowed the Company to carry forward the historical lease classification, the assessment on whether a contract is or contains a lease, and the initial direct costs for any leases that exist prior to adoption of the new standard. The Company has not restated prior periods under the optional transition method. The adoption of ASU 2016-02 on January 1, 2019 resulted in the recognition of right-of-use assets of approximately $22.7 million, lease liabilities of approximately $22.9 million and no cumulative-effect adjustment on retained earnings on its Condensed Consolidated Balance Sheets. Refer to Note 9 - Leases for further details. In February 2018, the FASB issued ASU 2018-02, Income Taxes (Topic 740), which allows for an entity to elect to reclassify the income tax effects on items within accumulated other comprehensive income resulting from U.S. Tax Cuts and Jobs Act to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company adopted ASC 2018-02 and elected to not reclassify the income tax effects under ASU 2018-02, as it does not have a material impact on the condensed consolidated financial statements. e. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue Revenue Recognition The Company generates revenue primarily through the sale and delivery of promised goods or services to customers and recognizes revenue when control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services. Performance obligations typically include the delivery of promised products, such as breast implants, tissue expanders, BIOCORNEUM, miraDry Systems and bioTips, along with service-type warranties and deliverables under certain marketing programs. Other deliverables are sometimes promised, but are ancillary and insignificant in the context of the contract as a whole. Sales prices are documented in the executed sales contract, purchase order or order acknowledgement prior to the transfer of control to the customer. Customers may enter into a separate extended service agreement to purchase an extended warranty for miraDry products from the Company whereby the payment is due at the inception of the agreement. Typical payment terms are 30 days for Breast Products and direct sales of consumable miraDry products, and tend to be longer for capital sales of miraDry Systems and sales to miraDry distributors, but do not extend beyond one year. For delivery of promised products, control transfers and revenue is recognized upon shipment, unless the contractual arrangement requires transfer of control when products reach their destination, for which revenue is recognized once the product arrives at its destination. Revenue for extended service agreements are recognized ratably over the term of the agreements. For Breast Products, with the exception of the Company’s BIOCORNEUM scar management products, the Company allows for the return of products from customers within six months after the original sale, which is accounted for as variable consideration. Reserves are established for anticipated sales returns based on the expected amount calculated with historical experience, recent gross sales and any notification of pending returns. The estimated sales return is recorded as a reduction of revenue and as a sales return liability in the same period revenue is recognized. Actual sales returns in any future period are inherently uncertain and thus may differ from the estimates. If actual sales returns differ significantly from the estimates, an adjustment to revenue in the current or subsequent period would be recorded. The Company has established an allowance for sales returns of $7.0 million and $6.0 million as of June 30, 2019 and December 31, 2018 respectively, recorded as “sales return liability” on the condensed consolidated balance sheets. The following table provides a rollforward of the sales return liability (in thousands): Sales return liability Balance as of December 31, 2018 $ 6,048 Addition to reserve for sales activity 47,178 Actual returns (46,895 ) Change in estimate of sales returns 689 Balance as of June 30, 2019 $ 7,020 For Breast Products, a portion of the Company’s revenue is generated from the sale of consigned inventory of breast implants maintained at doctor, hospital, and clinic locations. For these products, revenue is recognized at the time the Company is notified by the customer that the product has been implanted, not when the consigned products are delivered to the customer’s location. For miraDry, in addition to domestic and international direct sales, the Company leverages a distributor network for selling the miraDry System internationally. The Company recognizes revenue when control of the goods or services is transferred to the distributors. Standard terms in both direct sales agreements (domestic and international), and international distributor agreements do not allow for trial periods, right of return, refunds, payment contingent on obtaining financing or other terms that could impact the customer’s payment obligation. Arrangements with Multiple Performance Obligations The Company has determined that the delivery of each unit of product in the Company’s revenue contracts with customers is a separate performance obligation. The Company’s revenue contracts may include multiple products or services, each of which is considered a separate performance obligation. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on observable prices or using an expected cost plus margin approach when an observable price is not available. The Company invoices customers once products are shipped or delivered to customers depending on the negotiated shipping terms. The Company introduced its Platinum20 Limited Warranty Program, or Platinum20, in May 2018 on all OPUS breast implants implanted in the United States or Puerto Rico on or after May 1, 2018. Platinum20 provides for financial assistance for revision surgeries and no-charge contralateral replacement implants upon the occurrence of certain qualifying events. The Company considers Platinum20 to have an assurance warranty component and a service warranty component. The assurance component is recorded as a warranty liability at the time of sale (as discussed in Note 6). The Company considers the service warranty component as an additional performance obligation and defers revenue at the time of sale based on the relative estimated selling price, by estimating a standalone selling price using the expected cost plus margin approach for the performance obligation. Inputs into the expected cost plus margin approach include historical incidence rates, estimated replacement costs, estimated financial assistance payouts and an estimated margin. The liability for unsatisfied performance obligations under the service warranty as of June 30, 2019 and December 31, 2018 was $0.7 million and $0.4 million respectively. The short-term obligation related to the service warranty was $0.3 million and $0.2 million as of June 30, 2019 and December 31, 2018, respectively, and is included in “accrued and other current liabilities” on the condensed consolidated balance sheets. The long-term obligation related to the service warranty was $0.4 million and $0.3 million as of June 30, 2019 and December 31, 2018, respectively, and is included in “warranty reserve and other long-term liabilities” on the condensed consolidated balance sheets. The performance obligation is satisfied at the time that Platinum20 benefits are provided and are expected to be satisfied over the following 6 to 24 month period for financial assistance and 20 years for product replacement. Revenue recognized for the service warranty performance obligations for the three and six months ended June 30, 2019 was immaterial. Practical Expedients and Policy Election The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. The Company does not adjust accounts receivable for the effects of any significant financing components as customer payment terms are shorter than one year. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the products as activities to fulfill the promise to transfer the products to the customer. Shipping and handling activities are largely provided to customers free of charge for the Breast Products segment. The associated costs were $0.9 million and $0.6 million for the six months ended June 30, 2019 and 2018 respectively. The associated costs were $0.5 million and $0.3 million for the three months ended June 30, 2019 and 2018 respectively. These costs are viewed as part of the Company’s sales and marketing programs and are recorded as a component of sales and marketing expense in the condensed consolidated statement of operations as an accounting policy election. For the miraDry segment, shipping and handling charges are typically billed to customers and recorded as revenue. The shipping and handling costs incurred are recorded as a component of cost of goods sold in the condensed consolidated statement of operations. The associated costs were $0.3 million and $0.2 million for the six months ended June 30, 2019 and 2018 respectively. The associated costs were $0.2 million and $0.1 million for the three months ended June 30, 2019 and 2018 respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments Owned At Fair Value [Abstract] | |
Fair Value of Financial Instruments | 4 . Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, customer deposits and sales return liability are reasonable estimates of their fair value because of the short maturity of these items. The fair value of the common stock warrant liability and contingent consideration are discussed in Note 5. The fair value of the debt is based on the amount of future cash flows associated with the instrument discounted using the Company’s estimated market rate. As of June 30, 2019, the carrying value of the long-term debt was not materially different from the fair value. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 . Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s common stock warrant liabilities are carried at fair value determined according to the fair value hierarchy described above. The Company has utilized an option pricing valuation model to determine the fair value of its outstanding common stock warrant liabilities. The inputs to the model include fair value of the common stock related to the warrant, exercise price of the warrant, expected term, expected volatility, risk-free interest rate and dividend yield. The warrants are valued using the fair value of common stock as of the measurement date. The Company historically has been a private company and lacks company-specific historical and implied volatility information of its stock. Therefore, it estimates its expected stock volatility based on the historical volatility of publicly traded peer companies for a term equal to the remaining contractual term of the warrants. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the warrants. The Company has estimated a 0% dividend yield based on the expected dividend yield and the fact that the Company has never paid or declared dividends. As several significant inputs are not observable, the overall fair value measurement of the warrants is classified as Level 3. The Company assessed the fair value of the contingent consideration for future royalty payments related to the acquisition of BIOCORNEUM and the contingent consideration for the future milestone payments related to the acquisition of miraDry using a Monte-Carlo simulation model. Significant assumptions used in the measurement include future net sales for a defined term and the risk-adjusted discount rate associated with the business. As the inputs are not observable, the overall fair value measurement of the contingent consideration is classified as Level 3. The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 and indicate the level of the fair value hierarchy utilized to determine such fair value (in thousands): Fair Value Measurements as of June 30, 2019 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — 4 4 Liability for contingent consideration — — 13,136 13,136 $ — — 13,140 13,140 Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — 113 113 Liability for contingent consideration — — 13,847 13,847 $ — — 13,960 13,960 The liability for common stock warrants and the current portion of contingent consideration is included in “accrued and other current liabilities” and the long-term liabilities for the contingent consideration are included in “deferred and contingent consideration” in the condensed consolidated balance sheet. The following table provides a rollforward of the aggregate fair values of the Company’s common stock warrants and contingent consideration for which fair value is determined by Level 3 inputs (in thousands): Warrant Liability Balance, December 31, 2018 $ 113 Change in fair value of warrant liability (109 ) Balance, June 30, 2019 $ 4 Contingent Consideration Liability Balance, December 31, 2018 $ 13,847 Payments of contingent consideration (1,000 ) Change in fair value of contingent consideration 289 Balance, June 30, 2019 $ 13,136 The Company recognizes changes in the fair value of the warrants in “other income (expense), net” in the condensed consolidated statement of operations and changes in contingent consideration are recognized in “general and administrative” expense in the condensed consolidated statement of operations. |
Product Warranties
Product Warranties | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | 6 . Product Warranties The Company offers a product replacement and limited warranty program for the Company’s silicone gel breast implants, and a product warranty for the Company’s miraDry Systems and consumable bioTips. For silicone gel breast implant surgeries occurring prior to May 1, 2018, the Company provides lifetime replacement implants and up to $3,600 in financial assistance for revision surgeries, for covered rupture events that occur within ten years of the surgery date. The Company introduced its Platinum20 Limited Warranty Program in May 2018, covering OPUS silicone gel breast implants implanted in the United States or Puerto Rico on or after May 1, 2018. The Company considers the program to have an assurance warranty component and a service warranty component. The service warranty component is discussed in Note 3 above. The assurance component is related to the lifetime no-charge contralateral replacement implants and up to $5,000 in financial assistance for revision surgeries, for covered rupture events that occur within twenty years of the surgery date. Under the miraDry warranty, the Company provides a standard product warranty for the miraDry System and bioTips, which the Company considers an assurance-type warranty. The following table provides a rollforward of the accrued warranties (in thousands): Six Months Ended June 30, 2019 2018 Beginning balance as of January 1 $ 1,395 $ 1,642 Warranty costs incurred during the period (423 ) (231 ) Changes in accrual related to warranties issued during the period 651 568 Changes in accrual related to pre-existing warranties 23 4 Balance as of June 30 $ 1,646 $ 1,983 |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 7 . Net Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing net loss by the weighted average number of common shares outstanding during each period. Diluted net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding, to the extent they are dilutive. Potential common shares consist of shares issuable upon the exercise of stock options and warrants (using the treasury stock method). Dilutive net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net loss (in thousands) $ (37,654 ) $ (18,028 ) $ (64,138 ) $ (37,451 ) Weighted average common shares outstanding, basic and diluted 34,290,073 24,761,117 31,709,067 22,202,565 Net loss per share attributable to common stockholders $ (1.10 ) $ (0.73 ) $ (2.02 ) $ (1.69 ) The Company excluded the following potentially dilutive securities, outstanding as of June 30, 2019 and 2018, from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2019 and 2018 because they had an anti-dilutive impact due to the net loss attributable to common stockholders incurred for the periods. June 30, 2019 2018 Stock options to purchase common stock 1,069,167 2,011,503 Warrants for the purchase of common stock 47,710 47,710 1,116,877 2,059,213 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 8 . Balance Sheet Components a. Allowance for Doubtful Accounts The Company has established an allowance for doubtful accounts of $3.2 million and $2.4 million as of June 30, 2019 and December 31, 2018, respectively, recorded net against accounts receivable in the balance sheet. b. Inventories Inventories, net consist of the following (in thousands): June 30, December 31, 2019 2018 Raw materials $ 3,272 $ 2,147 Work in progress 2,322 2,110 Finished goods 22,502 18,335 Finished goods - right of return 1,768 1,493 $ 29,864 $ 24,085 c . Property and Equipment Property and equipment, net consist of the following (in thousands): June 30, December 31, 2019 2018 Leasehold improvements $ 418 $ 402 Manufacturing equipment and toolings 2,979 1,928 Computer equipment 911 682 Software 1,274 1,039 Office equipment 117 156 Furniture and fixtures 1,031 826 6,730 5,033 Less accumulated depreciation (3,044 ) (2,497 ) $ 3,686 $ 2,536 Depreciation expense for both the three months ended June 30, 2019 and 2018 was $0.3 million. Depreciation expense for both the six months ended June 30, 2019 and 2018 was $0.6 million. Under the terms of the manufacturing agreement with Vesta, upon the commencement of Contract Year One (as defined in the agreement) which occurred following FDA-approval of all submissions related to the site-change PMA supplement for the Vesta manufacturing facility, Vesta was obligated to purchase the manufacturing equipment and tooling that Sientra had originally purchased for the manufacture of Sientra’s breast implant inventory at Vesta’s manufacturing facility. Vesta repurchased the equipment with a net book value of $2.7 million in the third quarter of 2018 through a reduction in the Company’s accounts payable balance owed to Vesta. d . Goodwill and Other Intangible Assets, net The Company has determined that it has two reporting units, Breast Products and miraDry, and evaluates goodwill for impairment at least annually on October 1 st The changes in the carrying amount of goodwill during the six months ended June 30, 2019 were as follows (in thousands): Breast Products miraDry Total Balances as of December 31, 2018 Goodwill $ 19,156 $ 7,629 $ 26,785 Accumulated impairment losses (14,278 ) — (14,278 ) Goodwill, net $ 4,878 $ 7,629 $ 12,507 Balances as of June 30, 2019 Goodwill $ 19,156 $ 7,629 $ 26,785 Accumulated impairment losses (14,278 ) (7,629 ) (21,907 ) Goodwill, net $ 4,878 $ — $ 4,878 In the second quarter of 2019, the Company noted a decline in actual and forecasted earnings for the miraDry reporting unit in comparison to forecasted earnings determined in prior periods. Based on this evaluation, the Company determined that the carrying value of the miraDry reporting unit more likely than not exceeded its estimated fair value. As a result, the Company performed a quantitative analysis to compare the fair value of the reporting unit to its carrying amount. The Company’s fair value analysis of goodwill utilizes the income approach, which requires the use of estimates about a reporting unit’s future revenues and free cash flows, discount rates, terminal value and enterprise value to determine the estimated fair value. The Company’s future revenues and free cash flow assumptions are determined based upon actual results giving effect to management’s expected changes in operating results in future years. The enterprise value, discount rates and terminal value are based upon market participant assumptions using a defined peer group. After performing the impairment test as of June 30, 2019 the Company determined that the carrying value of its miraDry reporting unit exceeded its estimated fair value using the income approach, as described above, by an amount that indicated a full impairment of the carrying value of goodwill. Consequently, the Company recorded a non-cash goodwill impairment charge of $7.6 million in the accompanying condensed consolidated statement of operations for the three and six months ended June 30, 2019. The components of the Company’s other intangible assets consist of the following (in thousands): Average Amortization June 30, 2019 Period Gross Carrying Accumulated Intangible (in years) Amount Amortization Assets, net Intangibles with definite lives Customer relationships 11 $ 9,540 $ (2,978 ) $ 6,562 Trade names - finite life 14 2,000 (222 ) 1,778 Developed technology 13 1,500 — 1,500 Non-compete agreement 2 80 (80 ) — Regulatory approvals 1 670 (670 ) — Acquired FDA non-gel product approval 11 1,713 (1,713 ) — Total definite-lived intangible assets $ 15,503 $ (5,663 ) $ 9,840 Intangibles with indefinite lives Trade names - indefinite life — 450 — 450 Total indefinite-lived intangible assets $ 450 $ — $ 450 Average Amortization December 31, 2018 Period Gross Carrying Accumulated Intangible (in years) Amount Amortization Assets, net Intangibles with definite lives Customer relationships 11 $ 11,240 $ (3,486 ) $ 7,754 Trade names - finite life 14 5,800 (541 ) 5,259 Developed technology 15 3,000 (338 ) 2,662 Distributor relationships 9 500 (130 ) 370 Non-compete agreement 2 80 (80 ) — Regulatory approvals 1 670 (670 ) — Acquired FDA non-gel product approval 11 1,713 (1,713 ) — Total definite-lived intangible assets $ 23,003 $ (6,958 ) $ 16,045 Intangibles with indefinite lives Trade names - indefinite life — 450 — 450 Total indefinite-lived intangible assets $ 450 $ — $ 450 In connection with the circumstances leading to the impairment of goodwill for the miraDry reporting unit, the Company performed a test of recoverability of the intangible assets in the miraDry reporting unit by comparing the carrying amount of the intangible assets to the future undiscounted cash flows the assets are expected to generate. As the future undiscounted cash flows attributable to the intangible assets were less than the carrying value, the Company performed a quantitative analysis to compare the fair value of the intangible assets in the reporting unit to their carrying amount. The Company’s fair value analysis of intangible assets utilizes methods under various income approaches. The Company values its customer relationships using an excess earnings method, which assumes the value of the asset is the discounted cash flow using estimates of future cash flow derived from existing customers. Similarly, distributor relationships are valued using a distributor method, which assumes the value of the asset is the discounted cash flow using estimates of future cash flow derived from existing distributors. Tradenames and developed technology are valued using a relief from royalty method, which assumes the value of the asset is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the asset and instead licensed the asset from another company. After performing the impairment test as of June 30, 2019, the Company determined that the carrying values of all of the intangible assets in the miraDry reporting unit exceeded their estimated fair values. Consequently, the Company recorded non-cash impairment charges of $0.4 million for customer relationships, $0.3 million for distributor relationships, $3.3 million for tradenames, and $1.0 million for developed technology within goodwill and other intangible impairment in the accompanying condensed consolidated statement of operations for the three and six months ended June 30, 2019. Intangibles amortization expense for both the three months ended June 30, 2019 and 2018 was $0.6 million. Intangibles amortization expense for both the six months ended June 30, 2019 and 2018 was $1.2 million. The following table summarizes the estimated amortization expense relating to the Company's definite-lived intangible assets as of June 30, 2019 (in thousands): Amortization Period Expense Remainder of 2019 $ 1,022 2020 1,554 2021 1,305 2022 1,122 2023 975 Thereafter 3,862 $ 9,840 e . Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): June 30, December 31, 2019 2018 Payroll and related expenses $ 4,927 $ 6,466 Accrued commissions 3,606 5,321 Accrued equipment 721 18 Deferred and contingent consideration, current portion 13,060 7,645 Audit, consulting and legal fees 2,044 703 Accrued sales and marketing expenses 1,642 1,374 Operating lease liabilities 4,896 — Finance lease liabilities 42 — Other 5,342 6,170 $ 36,280 $ 27,697 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases The Company leases certain office space, warehouses, distribution facilities and office equipment. The Company also has embedded leases of manufacturing facilities and equipment associated with the Company’s manufacturing contracts. The Company determines if an arrangement contains a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating and finance lease right-of-use, or ROU, assets and lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. The Company determines its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. Lease terms may include options to extend or terminate when the Company is reasonably certain that the option will be exercised. As of June 30, 2019, the Company has included a five-year renewal option in the lease term for one operating lease as it was concluded that it is reasonably certain that the Company will exercise the option. The Company elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for short-term leases. The Company’s lease agreements generally do not contain material residual value guarantees or material restrictive covenants. The Company’s leases of office space, warehouses and distribution facilities are treated as operating leases and often contain lease and non-lease components. The Company has elected to account for these lease and non-lease components separately. Non-lease components for these assets are primarily comprised of common-area maintenance, utilities, and real estate taxes that are passed on from the lessor in proportion to the space leased by the Company, and are recognized in operating expenses in the period in which the obligation for those payments was incurred. Lease cost for these operating leases is recognized on a straight-line basis over the lease term in operating expenses. The Company’s embedded leases of manufacturing facilities and equipment are treated as operating leases and often contain lease and non-lease components. The Company has elected to account for these lease and non-lease components as a single lease component. There may be variability in future lease payments as the amount of the non-lease components is based on the costs of manufacturing and is dependent on the amount and types of units produced. The Company reduces the operating lease liability when the inventory is purchased. The Company’s leases of office equipment are accounted for as finance leases as they meet one or more of the five finance lease classification criteria. Lease cost for these finance leases is comprised of amortization of the ROU asset and interest expense which are recognized in operating expenses and other income (expense), net. Components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, Lease Cost Classification 2019 2019 Operating lease cost Operating expenses $ 386 $ 766 Operating lease cost Inventory 1,248 2,495 Total operating lease cost $ 1,634 $ 3,261 Finance lease cost Amortization of right-of-use assets Operating expenses 11 20 Interest on lease liabilities Other income (expense), net 1 2 Total finance lease cost $ 12 $ 22 Variable lease cost Inventory 2,297 4,595 Total lease cost $ 3,943 $ 7,878 Short-term lease expense for the three and six months ended June 30, 2019 was not material. Supplemental cash flow information related to operating and finance leases for the six months ended June 30, 2019 was as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 2,954 Operating cash outflows from finance leases 22 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 24,779 Finance leases 119 Supplemental balance sheet information, as of June 30, 2019, related to operating and finance leases was as follows (in thousands, except lease term and discount rate): June 30, 2019 Reported as: Other assets Operating lease right-of-use assets $ 22,443 Finance lease right-of-use assets 100 Total right-of use assets $ 22,543 Accrued and other current liabilities Operating lease liabilities $ 4,896 Finance lease liabilities 42 Warranty reserve and other long-term liabilities Operating lease liabilities 18,058 Finance lease liabilities 55 Total lease liabilities $ 23,051 Weighted average remaining lease term (years) Operating leases 4 Finance leases 2 Weighted average discount rate Operating leases 8.08 % Finance leases 4.21 % As of June 30, 2019, maturities of the Company’s operating and finance lease liabilities are as follows (in thousands): Period Operating leases Finance leases Total Remainder of 2019 $ 3,303 $ 23 $ 3,326 2020 6,639 43 6,682 2021 6,672 36 6,708 2022 6,405 — 6,405 2023 3,083 — 3,083 2024 and thereafter 964 — 964 Total lease payments $ 27,066 $ 102 $ 27,168 Less imputed interest 4,112 5 4,117 Total operating lease liabilities $ 22,954 $ 97 $ 23,051 As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2018 and under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2018 was as follows (in thousands): Year Ended December 31: 2019 $ 1,325 2020 1,134 2021 1,060 2022 947 2023 and thereafter 1,557 $ 6,023 The table above does not include the minimum purchase obligations of approximately $21.6 million over the five years following December 31, 2018 under the Company’s contracts with its manufacturers which upon adoption of ASU 2016-02 on January 1, 2019 were accounted for as operating lease ROU assets and lease liabilities. |
Long-Term Debt and Revolving Lo
Long-Term Debt and Revolving Loan | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Revolving Loan | 10 . Long-Term Debt and Revolving Loan On July 25, 2017, the Company entered into a Credit and Security Agreement, or the Term Loan Credit Agreement, and a Credit and Security Agreement, or the Revolving Credit Agreement with MidCap, and, together with the Term Loan Credit Agreement, the Credit Agreements, which replaced the Company’s then-existing Silicon Valley Bank Loan Agreement, or the SVB Loan Agreement. Under the terms of the Term Loan Credit Agreement, as of July 25, 2017, MidCap funded $25.0 million to the Company, or the Closing Date Term Loan. MidCap also made available to the Company until March 31, 2018, a $10.0 million term loan, or the March 2018 Term Loan, subject to the satisfaction of certain conditions, including FDA certifications of the manufacturing facility operated by Vesta, and an additional $5.0 million term loan, subject to the satisfaction of certain conditions, including evidence that the Company’s Net Revenue for the past 12 months was greater than or equal to $75.0 million, as defined in the Term Loan Credit Agreement, collectively the Term Loans. On April 18, 2018, the Company amended the Term Loan Credit Agreement pursuant to which the parties agreed to adjust the date by which the Company must obtain FDA approval of its PMA supplement in order to access the March 2018 Term Loan until April 30, 2018. In April 2018, upon FDA approval of the Company’s PMA supplement, MidCap funded the $10.0 million March Term Loan. Any indebtedness under the Term Loan Credit Agreement bears interest at a floating per annum rate equal to the LIBOR as reported by MidCap with a floor of 1.00%, which as of June 30, 2019 was 2.44%, plus 7.50%. The Term Loans have a scheduled maturity date of December 1, 2021, or the Maturity Date. Subject to an election to delay principal payments, the Company made monthly payments of accrued interest under the Term Loans from the funding date of the Term Loans, until December 31, 2018, to be followed by monthly installments of principal and interest through the Maturity Date. Under the terms of the Term Loan Credit Agreement, the Company had the option to extend the interest only period an additional six months to June 30, 2019 as long as the Company remained in compliance with the Term Loan Agreement. The Company has elected to extend the interest only period through June 30, 2019. The Company may prepay all of the Term Loans prior to its maturity date provided the Company pays MidCap a prepayment fee. The Company paid an origination fee of 0.50% of the Term Loans total amount of $40.0 million on the closing date. As of June 30, 2019, there was $35.0 million outstanding related to the Term Loans. As of June 30, 2019, the unamortized debt issuance costs on the Term Loans was approximately $0.1 million current portion and approximately $0.1 million long-term portion and are included as a reduction to debt on the condensed consolidated balance sheet. Any indebtedness under the Revolving Credit Agreement bears interest at a floating per annum rate equal to the LIBOR as reported by MidCap with a floor of 1.00%, plus 4.50%. The Company may make and repay borrowings from time to time under the Revolving Credit Agreement until the maturity of the facility on December 1, 2021. The Company is required to pay an annual collateral management fee of 0.50% on the outstanding balance, and an annual unused line fee of 0.50% of the average unused portion. The Company paid an origination fee of 0.50% of the Revolving Loan amount of $10.0 million on the closing date. The Company classifies the amounts borrowed under the Revolving Loan as short term because it is the Company's intention to use the line of credit to borrow and pay back funds over short periods of time. As of June 30, 2019, there were $4.3 million borrowings outstanding under the Revolving Loan. As of June 30, 2019, the unamortized debt issuance costs related to the Revolving Loan was approximately $0.1 million and was included in other long-term assets on the condensed consolidated balance sheet. The amortization of debt issuance costs for the three months ended June 30, 2019 and 2018 was $43,000 and $34,000, respectively. The amortization of debt issuance costs for both the six months ended June 30, 2019 and 2018 was $0.1 million and was included in interest expense in the condensed consolidated statements of operations. The Credit Agreements include customary affirmative and restrictive covenants and representations and warranties, including a financial covenant for minimum revenues, a financial covenant for minimum cash requirements, a covenant against the occurrence of a “change in control,” financial reporting obligations, and certain limitations on indebtedness, liens, investments, distributions, collateral, mergers or acquisitions, taxes, and deposit accounts. Upon the occurrence of an event of default, a default interest rate of an additional 5.0% may be applied to any outstanding principal balances, and MidCap may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the Credit Agreements. The Company’s obligations under the Credit Agreements are secured by a security interest in substantially all of The Company’s assets. Future Principal Payments of Debt The future schedule of principal payments for the outstanding Term Loans as of June 30, 2019 was as follows (in thousands): Fiscal Year Remainder of 2019 $ 7,000 2020 14,000 2021 14,000 2022 — 2023 — Thereafter — Total $ 35,000 On July 1, 2019, the Company entered into certain credit agreements with Midcap Financial Trust pursuant to which the Company repaid its existing indebtedness under its Credit Agreements and the outstanding commitment fee was cancelled. See Note 15 – Subsequent Events for further discussion. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | 1 1 . Stockholders’ Equity a. Authorized Stock The Company’s Amended and Restated Certificate of Incorporation authorizes the Company to issue 210,000,000 shares of common and preferred stock, consisting of 200,000,000 shares of common stock with $0.01 par value and 10,000,000 shares of preferred stock with $0.01 par value. As of June 30, 2019 and December 31, 2018, the Company had no preferred stock issued or outstanding. b. Common Stock Warrants On January 17, 2013, the Company entered into a Loan and Security Agreement, or the Original Term Loan Agreement, with Oxford Finance, LLC, or Oxford. On June 30, 2014, the Company entered into an Amended and Restated Loan and Security Agreement, or the Amended Term Loan Agreement, with Oxford. In connection with the Original Term Loan Agreement and the Amended Term Loan Agreement, the Company issued to Oxford (i) seven-year warrants in January 2013 to purchase shares of the Company’s common stock with a value equal to 3.0% of the tranche A, B and C term loans amounts and (ii) seven-year warrants in June 2014 to purchase shares of the Company’s common stock with a value equal to 2.5% of the tranche D term loan amount. The warrants have an exercise price per share of $14.671. As of June 30, 2019, there were warrants to purchase an aggregate of 47,710 shares of common stock outstanding. c. Stock Option Plans In April 2007, the Company adopted the 2007 Equity Incentive Plan, or the 2007 Plan. The 2007 Plan provides for the granting of stock options to employees, directors and consultants of the Company. Options granted under the 2007 Plan may either be incentive stock options or nonstatutory stock options. Incentive stock options, or ISOs, may be granted only to Company employees. Nonstatutory stock options, or NSOs, may be granted to all eligible recipients. A total of 1,690,448 shares of the Company’s common stock were initially reserved for issuance under the 2007 Plan. The Company’s board of directors adopted the 2014 Equity Incentive Plan, or 2014 Plan, in July 2014, and the stockholders approved the 2014 Plan in October 2014. The 2014 Plan became effective upon completion of the IPO on November 3, 2014, at which time the Company ceased granting awards under the 2007 Plan. Under the 2014 Plan, the Company may issue ISOs, NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards and other forms of stock awards, or collectively, stock awards, all of which may be granted to employees, including officers, non-employee directors and consultants of the Company and their affiliates. ISOs may be granted only to employees. A total of 1,027,500 shares of common stock were initially reserved for issuance under the 2014 Plan, subject to certain annual increases. As of June 30, 2019, a total of 475,954 shares of the Company’s common stock were available for issuance under the 2014 Plan. Pursuant to a board-approved Inducement Plan, the Company may issue NSOs and restricted stock unit awards, or collectively, stock awards, all of which may only be granted to new employees of the Company and their affiliates in accordance with NASDAQ Stock Market Rule 5635(c)(4) as an inducement material to such individuals entering into employment with the Company. As of June 30, 2019, inducement grants for 1,108,278 shares of common stock have been awarded, and 320,538 shares of common stock were available for future issuance under the Inducement Plan. Options under the 2007 Plan and the 2014 Plan may be granted for periods of up to ten years as determined by the Company’s board of directors, provided, however, that (i) the exercise price of an ISO shall not be less than 100% of the estimated fair value of the shares on the date of grant, and (ii) the exercise price of an ISO granted to a more than 10% shareholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. An NSO has no such exercise price limitations. NSOs under the Inducement Plan may be granted for periods of up to ten years as determined by the board of directors, provided, the exercise price will not be less than 100% of the estimated fair value of the shares on the date of grant. Options generally vest with 25% of the grant vesting on the first anniversary and the balance vesting monthly on a straight-lined basis over the requisite service period of three additional years for the award. Additionally, options have been granted to certain key executives that vest upon achievement of performance conditions based on performance targets as defined by the board of directors, which have included net sales targets and defined corporate objectives over the performance period with possible payout ranging from 0% to 100% of the target award. Compensation expense is recognized on a straight-lined basis over the vesting term of one year based upon the probable performance target that will be met. The vesting provisions of individual options may vary but provide for vesting of at least 25% per year. The following summarizes all option activity under the 2007 Plan, 2014 Plan and Inducement Plan: Weighted Weighted average average remaining Option exercise contractual Shares price term (years) Balances at December 31, 2018 1,953,334 $ 7.42 6.30 Exercised (45,453 ) 2.34 Balances at June 30, 2019 1,907,881 $ 7.54 5.96 For stock-based awards the Company recognizes compensation expense based on the grant date fair value using the Black-Scholes option valuation model. Stock-based compensation expense related to stock options was $0.1 million and $0.4 million for the three months ended June 30, 2019 and 2018, respectively. Stock-based compensation expense related to stock options was $0.4 million and $0.8 million for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019, there was $0.3 million of unrecognized compensation costs related to stock options. The expense is recorded within the operating expense components in the condensed consolidated statement of operations based on the recipients receiving the awards. These costs are expected to be recognized over a weighted average period of approximately 1 year. d. Restricted Stock Units The Company has issued restricted stock unit awards, or RSUs, under the 2014 Plan and the Inducement Plan. The RSUs issued to employees generally vest on a straight-line basis annually over a 3-year requisite service period. RSUs issued to non-employees generally vest either monthly or annually over the service term. Activity related to RSUs is set forth below: Weighted average Number grant date of shares fair value Balances at December 31, 2018 2,141,350 $ 13.27 Granted 1,198,845 8.21 Vested (759,699 ) 11.77 Forfeited (182,317 ) 16.22 Balances at June 30, 2019 2,398,179 $ 10.99 Stock-based compensation expense for RSUs for the three months ended June 30, 2019 and 2018 was $2.7 million and $2.6 million, respectively. Stock-based compensation expense for RSUs for the six months ended June 30, 2019 and 2018 was $6.0 million and $4.6 million, respectively. As of June 30, 2019, there was $20.4 million of total unrecognized compensation costs related to non-vested RSU awards. The cost is expected to be recognized over a weighted average period of approximately 2 years. e. Employee Stock Purchase Plan The Company’s board of directors adopted the 2014 Employee Stock Purchase Plan, or ESPP, in July 2014, and the stockholders approved the ESPP in October 2014. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides for offering periods not to exceed 27 months, and each offering period will include purchase periods, which will be the approximately six-month period commencing with one exercise date and ending with the next exercise date. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the purchase date. A total of 255,500 shares of common stock were initially reserved for issuance under the ESPP, subject to certain annual increases. During the six months ended June 30, 2019, employees purchased 68,899 shares of common stock at a weighted average price of $9.91 per share. As of June 30, 2019, the number of shares of common stock available for future issuance was 761,344. The Company estimated the fair value of employee stock purchase rights using the Black-Scholes model. Stock-based compensation expense related to the ESPP was $0.1 million for both the three months ended June 30, 2019 and 2018. Stock-based compensation expense related to the ESPP was $0.3 million for both the six months ended June 30, 2019 and 2018. f. Significant Modifications During the six months ended June 30, 2019 the Company entered into a consulting agreement with one former employee that resulted in the modification of their existing equity awards. During the six months ended June 30, 2019 the Company recognized $0.4 million in incremental compensation cost resulting from this modification. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 . Income Taxes The Company the Company |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 1 3 . Segment Information Reportable Segments The Company has two reportable segments: Breast Products and miraDry. The Breast Products segment focuses on sales of silicone gel breast implants, tissue expanders and scar management products under the brands Opus, AlloX2, Dermaspan, Softspan and BIOCORNEUM. The miraDry segment focuses on sales of the miraDry System, consisting of a console and a handheld device which uses consumable single-use bioTips. These segments align with the Company’s principal target markets. The Company’s Chief Operating Decision Maker, or CODM, assesses the performance of each segment and allocates resources to those segments based on net sales and operating income (loss). Operating income (loss) by segment includes items that are directly attributable to each segment, including sales and marketing functions, as well as finance, information technology, human resources, legal and related corporate infrastructure costs, along with certain benefit-related expenses. There are no unallocated expenses for the two segments. The following tables present the net sales, net operating loss and net assets by reportable segment for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net sales Breast Products $ 11,194 $ 9,412 $ 20,944 $ 17,954 miraDry 9,331 8,142 17,133 14,275 Total net sales $ 20,525 $ 17,554 $ 38,077 $ 32,229 Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Loss from operations Breast Products $ (12,202 ) $ (12,444 ) $ (26,236 ) $ (25,238 ) miraDry (24,762 ) (4,454 ) (36,581 ) (10,588 ) Total loss from operations $ (36,964 ) $ (16,898 ) $ (62,817 ) $ (35,826 ) June 30, December 31, 2019 2018 Assets Breast Products $ 212,234 $ 130,149 miraDry 33,711 38,210 Total assets $ 245,945 $ 168,359 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 4 . Commitments and Contingencies The Company is subject to claims and assessment from time to time in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. miraDry Class Action Litigation On August 3, 2017, a lawsuit styled as a verified class action on the part of the former stockholders of miraDry was filed in the Court of Chancery for the State of Delaware against the former board of directors of miraDry, or the Defendants, alleging breach of their fiduciary duties in connection with the Company’s acquisition of miraDry. On August 30, 2017, the Defendants moved to dismiss the verified class action complaint for failure to state a claim upon which relief can be granted. On November 11, 2017 the parties notified the Court that they had reached an agreement to settle the matter pending completion of confirmatory discovery regarding the fairness of the settlement and obtaining approval from the court. Following a hearing, the Delaware Chancery Court approved the proposed settlement terms on January 15, 2019, with a modification to the amount of attorneys’ fees awarded to the plaintiffs’ attorneys. Under the terms of the settlement, in exchange for a full and final settlement and release of all claims, the Defendants (and/or their indemnitors and/or insurers) paid a settlement consideration of $0.4 million. The miraDry Merger Agreement contained a holdback amount expected to be used for the settlement and associated costs of the miraDry Class Action litigation. The holdback amount has been used to offset $0.6 million of legal fees and $0.4 million was included in “legal settlement payable” on the consolidated balance sheet as of December 31, 2018. The legal settlement of $0.4 million was paid during the first quarter of 2019. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events Term Loan Credit Agreement and Revolving Credit Agreement On July 1, 2019 the Company entered into the Restated Term Loan Credit Agreement with MidCap Financial Trust as the agent and lender, and additional lenders thereto from time to time (the “Restated Term Loan”), which restates its existing Credit and Security Agreement, dated July 25, 2017. The Restated Term Loan Credit Agreement provides for (i) a $35 million term loan facility drawn at signing, (ii) a $5 million term loan facility drawn at signing, (iii) at any time after September 30, 2020 to December 31, 2020, a $10.0 million term loan facility (subject to the satisfaction of certain conditions, including evidence that the Company’s Net Revenue for the past 12 months was greater than or equal to $100.0 million), and (iv) until December 31, 2020 and upon the consent of Agent and the lenders following a request from the Company, an additional $15.0 million term loan facility (altogether, the “Restated Term Loan”). To date, the Company has drawn $40 million on the loan. The Restated Term Loan matures on July 1, 2024 and carries an interest rate of LIBOR plus 7.50%. The Company will make monthly payments of accrued interest under the Restated Term Loan from the funding date of the Restated Term Loan, until July 31, 2021, to be followed by monthly installments of principal and interest through the Maturity Date of July 1, 2024. The Company may prepay all of the Restated Term Loan prior to its maturity date provided the Company pays MidCap a prepayment fee. Net proceeds from the Restated Term Loan were used to repay the $35 million outstanding balance related to the Term Loans. Also on July 1, 2019, Sientra entered into an Amended and Restated Credit and Security Agreement (Revolving Loan), by and among the Company, the lenders party thereto from time to time, and MidCap Financial Trust (the “Agent”) (the “Restated Revolving Credit Agreement”). The Restated Revolving Credit Agreement provides for, among other things, a revolving loan of up to $10.0 million (the “Restated Revolving Loan”). The amount of loans available to be drawn under the Revolving Credit Agreement is based on a borrowing base equal to 85% of the net collectible value of eligible accounts receivable plus 40% of eligible finished goods inventory, or the Borrowing Base, provided that availability from eligible finished goods inventory does not exceed 20% of the Borrowing Base. The Restated Revolving Loan carries an interest rate of LIBOR plus 4.50%. The Borrowers may make (subject to the applicable borrowing base at the time) and repay borrowings from time to time under the Revolving Credit Agreement until the maturity of the facility on July 1, 2024. Immediately prior to the effectiveness of the Restated Revolving Credit Agreement, the Company converted the $4.3 million outstanding borrowings under the Revolving Loan into the Restated Revolving Loan. The Credit Agreements include customary affirmative and restrictive covenants and representations and warranties, including a financial covenant for minimum revenues, a financial covenant for minimum cash requirements, a covenant against the occurrence of a “change in control,” financial reporting obligations, and certain limitations on indebtedness, liens, investments, distributions, collateral, mergers or acquisitions, taxes, and deposit accounts. Upon the occurrence of an event of default, a default interest rate of an additional 5.0% may be applied to any outstanding principal balances, and MidCap may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the Credit Agreements. The obligations under each Credit Agreement are guaranteed by the Company and the Company’s existing and subsequently acquired or formed direct and indirect subsidiaries (other than certain foreign subsidiaries). The obligations under the Credit Agreements are secured, subject to customary permitted liens and other agreed upon exceptions, by a perfected security interest in (i) all tangible and intangible assets of the Borrowers and the guarantors, except for certain customary excluded property, and (ii) all of the capital stock owned by the Company and guarantors thereunder (limited, in the case of the stock of certain non-U.S. subsidiaries of the Company, to 65% of the capital stock of such subsidiaries). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a. Basis of Presentation The accompanying unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 14, 2019, or the Annual Report. The results for the three and six months ended June 30, 2019 are not necessarily indicative of results to be expected for the year ending December 31, 2019, any other interim periods, or any future year or period. |
Liquidity | b. Liquidity Since the Company’s inception, it has incurred significant net operating losses and the Company anticipates that losses will continue in the near term. The Company expects its operating expenses will continue to grow as they expand operations. The Company will need to generate significant net sales to achieve profitability. To date, the Company has funded operations primarily with proceeds from the sales of preferred stock, borrowings under term loans, sales of products since 2012, and the proceeds from the sale of common stock in public offerings. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of June 30, 2019, the Company had cash and cash equivalents of $146.1 million. Since inception, the Company has incurred recurring losses from operations and cash outflows from operating activities. The continuation of the Company as a going concern is dependent upon many factors including liquidity and the ability to raise capital The Company received FDA approval of their PMA supplement on April 17, 2018 and was then able to access a $10.0 million term loan pursuant to an amendment to the credit agreement with MidCap Financial Trust, or MidCap. In addition, in February 2018, the Company entered into an At-The-Market Equity Offering Sales Agreement with Stifel, Nicolaus & Company, Incorporated, or Stifel, as sales agent pursuant to which the Company may sell, from time to time, through Stifel, shares of our common stock having an aggregate gross offering price of up to $50.0 million. . Further, on after deducting underwriting discounts and commissions and other offering expenses. On July 1, 2019, the Company entered into certain credit agreements with Midcap Financial Trust pursuant to which the Company repaid its existing indebtedness under its Loan Agreement and the outstanding commitment fee was cancelled. See Note 15 – Subsequent Events for further discussion. The Company believes that its cash and cash equivalents will be sufficient to fund its operations for at least the next 12 months. , the Company may need to raise additional capital in the future through the sale of equity securities and incremental debt financing. |
Use of Estimates | c. Use of Estimates The preparation of the condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | d. Recent Accounting Pronouncements Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update, or ASU, 2016-02, Leases (Topic 842). This ASU requires a company to recognize lease assets and liabilities arising from operating leases in the statement of financial position. This ASU does not significantly change the previous lease guidance for how a lessee should recognize the recognition, measurement, and presentation of expenses and cash flows arising from a lease. Additionally, the criteria for classifying a finance lease versus an operating lease are substantially the same as the previous guidance. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption was permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements, amending certain aspects of the new leasing standard. The amendment allowed an additional optional transition method whereby an entity records a cumulative effect adjustment to opening retained earnings in the year of adoption without restating prior periods. The Company adopted Topic 842 on January 1, 2019 electing the package of practical expedients permitted under the transition guidance, which allowed the Company to carry forward the historical lease classification, the assessment on whether a contract is or contains a lease, and the initial direct costs for any leases that exist prior to adoption of the new standard. The Company has not restated prior periods under the optional transition method. The adoption of ASU 2016-02 on January 1, 2019 resulted in the recognition of right-of-use assets of approximately $22.7 million, lease liabilities of approximately $22.9 million and no cumulative-effect adjustment on retained earnings on its Condensed Consolidated Balance Sheets. Refer to Note 9 - Leases for further details. In February 2018, the FASB issued ASU 2018-02, Income Taxes (Topic 740), which allows for an entity to elect to reclassify the income tax effects on items within accumulated other comprehensive income resulting from U.S. Tax Cuts and Jobs Act to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company adopted ASC 2018-02 and elected to not reclassify the income tax effects under ASU 2018-02, as it does not have a material impact on the condensed consolidated financial statements. |
Reclassifications | e. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Revenue Recognition | Revenue Recognition The Company generates revenue primarily through the sale and delivery of promised goods or services to customers and recognizes revenue when control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services. Performance obligations typically include the delivery of promised products, such as breast implants, tissue expanders, BIOCORNEUM, miraDry Systems and bioTips, along with service-type warranties and deliverables under certain marketing programs. Other deliverables are sometimes promised, but are ancillary and insignificant in the context of the contract as a whole. Sales prices are documented in the executed sales contract, purchase order or order acknowledgement prior to the transfer of control to the customer. Customers may enter into a separate extended service agreement to purchase an extended warranty for miraDry products from the Company whereby the payment is due at the inception of the agreement. Typical payment terms are 30 days for Breast Products and direct sales of consumable miraDry products, and tend to be longer for capital sales of miraDry Systems and sales to miraDry distributors, but do not extend beyond one year. For delivery of promised products, control transfers and revenue is recognized upon shipment, unless the contractual arrangement requires transfer of control when products reach their destination, for which revenue is recognized once the product arrives at its destination. Revenue for extended service agreements are recognized ratably over the term of the agreements. For Breast Products, with the exception of the Company’s BIOCORNEUM scar management products, the Company allows for the return of products from customers within six months after the original sale, which is accounted for as variable consideration. Reserves are established for anticipated sales returns based on the expected amount calculated with historical experience, recent gross sales and any notification of pending returns. The estimated sales return is recorded as a reduction of revenue and as a sales return liability in the same period revenue is recognized. Actual sales returns in any future period are inherently uncertain and thus may differ from the estimates. If actual sales returns differ significantly from the estimates, an adjustment to revenue in the current or subsequent period would be recorded. The Company has established an allowance for sales returns of $7.0 million and $6.0 million as of June 30, 2019 and December 31, 2018 respectively, recorded as “sales return liability” on the condensed consolidated balance sheets. The following table provides a rollforward of the sales return liability (in thousands): Sales return liability Balance as of December 31, 2018 $ 6,048 Addition to reserve for sales activity 47,178 Actual returns (46,895 ) Change in estimate of sales returns 689 Balance as of June 30, 2019 $ 7,020 For Breast Products, a portion of the Company’s revenue is generated from the sale of consigned inventory of breast implants maintained at doctor, hospital, and clinic locations. For these products, revenue is recognized at the time the Company is notified by the customer that the product has been implanted, not when the consigned products are delivered to the customer’s location. For miraDry, in addition to domestic and international direct sales, the Company leverages a distributor network for selling the miraDry System internationally. The Company recognizes revenue when control of the goods or services is transferred to the distributors. Standard terms in both direct sales agreements (domestic and international), and international distributor agreements do not allow for trial periods, right of return, refunds, payment contingent on obtaining financing or other terms that could impact the customer’s payment obligation. Arrangements with Multiple Performance Obligations The Company has determined that the delivery of each unit of product in the Company’s revenue contracts with customers is a separate performance obligation. The Company’s revenue contracts may include multiple products or services, each of which is considered a separate performance obligation. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on observable prices or using an expected cost plus margin approach when an observable price is not available. The Company invoices customers once products are shipped or delivered to customers depending on the negotiated shipping terms. The Company introduced its Platinum20 Limited Warranty Program, or Platinum20, in May 2018 on all OPUS breast implants implanted in the United States or Puerto Rico on or after May 1, 2018. Platinum20 provides for financial assistance for revision surgeries and no-charge contralateral replacement implants upon the occurrence of certain qualifying events. The Company considers Platinum20 to have an assurance warranty component and a service warranty component. The assurance component is recorded as a warranty liability at the time of sale (as discussed in Note 6). The Company considers the service warranty component as an additional performance obligation and defers revenue at the time of sale based on the relative estimated selling price, by estimating a standalone selling price using the expected cost plus margin approach for the performance obligation. Inputs into the expected cost plus margin approach include historical incidence rates, estimated replacement costs, estimated financial assistance payouts and an estimated margin. The liability for unsatisfied performance obligations under the service warranty as of June 30, 2019 and December 31, 2018 was $0.7 million and $0.4 million respectively. The short-term obligation related to the service warranty was $0.3 million and $0.2 million as of June 30, 2019 and December 31, 2018, respectively, and is included in “accrued and other current liabilities” on the condensed consolidated balance sheets. The long-term obligation related to the service warranty was $0.4 million and $0.3 million as of June 30, 2019 and December 31, 2018, respectively, and is included in “warranty reserve and other long-term liabilities” on the condensed consolidated balance sheets. The performance obligation is satisfied at the time that Platinum20 benefits are provided and are expected to be satisfied over the following 6 to 24 month period for financial assistance and 20 years for product replacement. Revenue recognized for the service warranty performance obligations for the three and six months ended June 30, 2019 was immaterial. Practical Expedients and Policy Election The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. The Company does not adjust accounts receivable for the effects of any significant financing components as customer payment terms are shorter than one year. The Company has elected to account for shipping and handling activities performed after a customer obtains control of the products as activities to fulfill the promise to transfer the products to the customer. Shipping and handling activities are largely provided to customers free of charge for the Breast Products segment. The associated costs were $0.9 million and $0.6 million for the six months ended June 30, 2019 and 2018 respectively. The associated costs were $0.5 million and $0.3 million for the three months ended June 30, 2019 and 2018 respectively. These costs are viewed as part of the Company’s sales and marketing programs and are recorded as a component of sales and marketing expense in the condensed consolidated statement of operations as an accounting policy election. For the miraDry segment, shipping and handling charges are typically billed to customers and recorded as revenue. The shipping and handling costs incurred are recorded as a component of cost of goods sold in the condensed consolidated statement of operations. The associated costs were $0.3 million and $0.2 million for the six months ended June 30, 2019 and 2018 respectively. The associated costs were $0.2 million and $0.1 million for the three months ended June 30, 2019 and 2018 respectively. |
Leases | Leases The Company leases certain office space, warehouses, distribution facilities and office equipment. The Company also has embedded leases of manufacturing facilities and equipment associated with the Company’s manufacturing contracts. The Company determines if an arrangement contains a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating and finance lease right-of-use, or ROU, assets and lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. The Company determines its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. Lease terms may include options to extend or terminate when the Company is reasonably certain that the option will be exercised. As of June 30, 2019, the Company has included a five-year renewal option in the lease term for one operating lease as it was concluded that it is reasonably certain that the Company will exercise the option. The Company elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for short-term leases. The Company’s lease agreements generally do not contain material residual value guarantees or material restrictive covenants. The Company’s leases of office space, warehouses and distribution facilities are treated as operating leases and often contain lease and non-lease components. The Company has elected to account for these lease and non-lease components separately. Non-lease components for these assets are primarily comprised of common-area maintenance, utilities, and real estate taxes that are passed on from the lessor in proportion to the space leased by the Company, and are recognized in operating expenses in the period in which the obligation for those payments was incurred. Lease cost for these operating leases is recognized on a straight-line basis over the lease term in operating expenses. The Company’s embedded leases of manufacturing facilities and equipment are treated as operating leases and often contain lease and non-lease components. The Company has elected to account for these lease and non-lease components as a single lease component. There may be variability in future lease payments as the amount of the non-lease components is based on the costs of manufacturing and is dependent on the amount and types of units produced. The Company reduces the operating lease liability when the inventory is purchased. The Company’s leases of office equipment are accounted for as finance leases as they meet one or more of the five finance lease classification criteria. Lease cost for these finance leases is comprised of amortization of the ROU asset and interest expense which are recognized in operating expenses and other income (expense), net. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Rollforward of Sales Return Liability | The following table provides a rollforward of the sales return liability (in thousands): Sales return liability Balance as of December 31, 2018 $ 6,048 Addition to reserve for sales activity 47,178 Actual returns (46,895 ) Change in estimate of sales returns 689 Balance as of June 30, 2019 $ 7,020 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Liabilities that are Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 and indicate the level of the fair value hierarchy utilized to determine such fair value (in thousands): Fair Value Measurements as of June 30, 2019 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — 4 4 Liability for contingent consideration — — 13,136 13,136 $ — — 13,140 13,140 Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — 113 113 Liability for contingent consideration — — 13,847 13,847 $ — — 13,960 13,960 |
Schedule of Aggregate Fair Values of the Company's Common Stock Warrants and Contingent Consideration for which Fair Value is Determined by Level 3 Inputs | The following table provides a rollforward of the aggregate fair values of the Company’s common stock warrants and contingent consideration for which fair value is determined by Level 3 inputs (in thousands): Warrant Liability Balance, December 31, 2018 $ 113 Change in fair value of warrant liability (109 ) Balance, June 30, 2019 $ 4 Contingent Consideration Liability Balance, December 31, 2018 $ 13,847 Payments of contingent consideration (1,000 ) Change in fair value of contingent consideration 289 Balance, June 30, 2019 $ 13,136 |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of rollforward of the accrued warranties | The following table provides a rollforward of the accrued warranties (in thousands): Six Months Ended June 30, 2019 2018 Beginning balance as of January 1 $ 1,395 $ 1,642 Warranty costs incurred during the period (423 ) (231 ) Changes in accrual related to warranties issued during the period 651 568 Changes in accrual related to pre-existing warranties 23 4 Balance as of June 30 $ 1,646 $ 1,983 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of net loss per share, basic and diluted | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net loss (in thousands) $ (37,654 ) $ (18,028 ) $ (64,138 ) $ (37,451 ) Weighted average common shares outstanding, basic and diluted 34,290,073 24,761,117 31,709,067 22,202,565 Net loss per share attributable to common stockholders $ (1.10 ) $ (0.73 ) $ (2.02 ) $ (1.69 ) |
Schedule of potentially dilutive securities excluded from the computation of diluted net loss per share attributable to common stockholders | The Company excluded the following potentially dilutive securities, outstanding as of June 30, 2019 and 2018, from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2019 and 2018 because they had an anti-dilutive impact due to the net loss attributable to common stockholders incurred for the periods. June 30, 2019 2018 Stock options to purchase common stock 1,069,167 2,011,503 Warrants for the purchase of common stock 47,710 47,710 1,116,877 2,059,213 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of inventories, net | Inventories, net consist of the following (in thousands): June 30, December 31, 2019 2018 Raw materials $ 3,272 $ 2,147 Work in progress 2,322 2,110 Finished goods 22,502 18,335 Finished goods - right of return 1,768 1,493 $ 29,864 $ 24,085 |
Schedule of property and equipment, net | Property and equipment, net consist of the following (in thousands): June 30, December 31, 2019 2018 Leasehold improvements $ 418 $ 402 Manufacturing equipment and toolings 2,979 1,928 Computer equipment 911 682 Software 1,274 1,039 Office equipment 117 156 Furniture and fixtures 1,031 826 6,730 5,033 Less accumulated depreciation (3,044 ) (2,497 ) $ 3,686 $ 2,536 |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill during the six months ended June 30, 2019 were as follows (in thousands): Breast Products miraDry Total Balances as of December 31, 2018 Goodwill $ 19,156 $ 7,629 $ 26,785 Accumulated impairment losses (14,278 ) — (14,278 ) Goodwill, net $ 4,878 $ 7,629 $ 12,507 Balances as of June 30, 2019 Goodwill $ 19,156 $ 7,629 $ 26,785 Accumulated impairment losses (14,278 ) (7,629 ) (21,907 ) Goodwill, net $ 4,878 $ — $ 4,878 |
Schedule of intangible assets | The components of the Company’s other intangible assets consist of the following (in thousands): Average Amortization June 30, 2019 Period Gross Carrying Accumulated Intangible (in years) Amount Amortization Assets, net Intangibles with definite lives Customer relationships 11 $ 9,540 $ (2,978 ) $ 6,562 Trade names - finite life 14 2,000 (222 ) 1,778 Developed technology 13 1,500 — 1,500 Non-compete agreement 2 80 (80 ) — Regulatory approvals 1 670 (670 ) — Acquired FDA non-gel product approval 11 1,713 (1,713 ) — Total definite-lived intangible assets $ 15,503 $ (5,663 ) $ 9,840 Intangibles with indefinite lives Trade names - indefinite life — 450 — 450 Total indefinite-lived intangible assets $ 450 $ — $ 450 Average Amortization December 31, 2018 Period Gross Carrying Accumulated Intangible (in years) Amount Amortization Assets, net Intangibles with definite lives Customer relationships 11 $ 11,240 $ (3,486 ) $ 7,754 Trade names - finite life 14 5,800 (541 ) 5,259 Developed technology 15 3,000 (338 ) 2,662 Distributor relationships 9 500 (130 ) 370 Non-compete agreement 2 80 (80 ) — Regulatory approvals 1 670 (670 ) — Acquired FDA non-gel product approval 11 1,713 (1,713 ) — Total definite-lived intangible assets $ 23,003 $ (6,958 ) $ 16,045 Intangibles with indefinite lives Trade names - indefinite life — 450 — 450 Total indefinite-lived intangible assets $ 450 $ — $ 450 |
Schedule of estimated amortization expense | The following table summarizes the estimated amortization expense relating to the Company's definite-lived intangible assets as of June 30, 2019 (in thousands): Amortization Period Expense Remainder of 2019 $ 1,022 2020 1,554 2021 1,305 2022 1,122 2023 975 Thereafter 3,862 $ 9,840 |
Schedule of accrued and other current liabilities | Accrued and other current liabilities consist of the following (in thousands): June 30, December 31, 2019 2018 Payroll and related expenses $ 4,927 $ 6,466 Accrued commissions 3,606 5,321 Accrued equipment 721 18 Deferred and contingent consideration, current portion 13,060 7,645 Audit, consulting and legal fees 2,044 703 Accrued sales and marketing expenses 1,642 1,374 Operating lease liabilities 4,896 — Finance lease liabilities 42 — Other 5,342 6,170 $ 36,280 $ 27,697 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | Components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, Lease Cost Classification 2019 2019 Operating lease cost Operating expenses $ 386 $ 766 Operating lease cost Inventory 1,248 2,495 Total operating lease cost $ 1,634 $ 3,261 Finance lease cost Amortization of right-of-use assets Operating expenses 11 20 Interest on lease liabilities Other income (expense), net 1 2 Total finance lease cost $ 12 $ 22 Variable lease cost Inventory 2,297 4,595 Total lease cost $ 3,943 $ 7,878 |
Supplemental Cash Flow Information Related to Operating and Finance Leases | Supplemental cash flow information related to operating and finance leases for the six months ended June 30, 2019 was as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 2,954 Operating cash outflows from finance leases 22 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 24,779 Finance leases 119 |
Supplemental Balance Sheet Information Related to Operating and Finance Leases | Supplemental balance sheet information, as of June 30, 2019, related to operating and finance leases was as follows (in thousands, except lease term and discount rate): June 30, 2019 Reported as: Other assets Operating lease right-of-use assets $ 22,443 Finance lease right-of-use assets 100 Total right-of use assets $ 22,543 Accrued and other current liabilities Operating lease liabilities $ 4,896 Finance lease liabilities 42 Warranty reserve and other long-term liabilities Operating lease liabilities 18,058 Finance lease liabilities 55 Total lease liabilities $ 23,051 Weighted average remaining lease term (years) Operating leases 4 Finance leases 2 Weighted average discount rate Operating leases 8.08 % Finance leases 4.21 % |
Maturities of Operating and Finance Lease Liabilities | As of June 30, 2019, maturities of the Company’s operating and finance lease liabilities are as follows (in thousands): Period Operating leases Finance leases Total Remainder of 2019 $ 3,303 $ 23 $ 3,326 2020 6,639 43 6,682 2021 6,672 36 6,708 2022 6,405 — 6,405 2023 3,083 — 3,083 2024 and thereafter 964 — 964 Total lease payments $ 27,066 $ 102 $ 27,168 Less imputed interest 4,112 5 4,117 Total operating lease liabilities $ 22,954 $ 97 $ 23,051 |
Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases | As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2018 and under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2018 was as follows (in thousands): Year Ended December 31: 2019 $ 1,325 2020 1,134 2021 1,060 2022 947 2023 and thereafter 1,557 $ 6,023 |
Long-Term Debt and Revolving _2
Long-Term Debt and Revolving Loan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Principal Payments for Outstanding Term Loans | The future schedule of principal payments for the outstanding Term Loans as of June 30, 2019 was as follows (in thousands): Fiscal Year Remainder of 2019 $ 7,000 2020 14,000 2021 14,000 2022 — 2023 — Thereafter — Total $ 35,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of option activity | The following summarizes all option activity under the 2007 Plan, 2014 Plan and Inducement Plan: Weighted Weighted average average remaining Option exercise contractual Shares price term (years) Balances at December 31, 2018 1,953,334 $ 7.42 6.30 Exercised (45,453 ) 2.34 Balances at June 30, 2019 1,907,881 $ 7.54 5.96 |
Summary of RSUs activity | Activity related to RSUs is set forth below: Weighted average Number grant date of shares fair value Balances at December 31, 2018 2,141,350 $ 13.27 Granted 1,198,845 8.21 Vested (759,699 ) 11.77 Forfeited (182,317 ) 16.22 Balances at June 30, 2019 2,398,179 $ 10.99 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Net Sales, Net Operating Loss and Net Assets by Reportable Segment | The following tables present the net sales, net operating loss and net assets by reportable segment for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net sales Breast Products $ 11,194 $ 9,412 $ 20,944 $ 17,954 miraDry 9,331 8,142 17,133 14,275 Total net sales $ 20,525 $ 17,554 $ 38,077 $ 32,229 Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Loss from operations Breast Products $ (12,202 ) $ (12,444 ) $ (26,236 ) $ (25,238 ) miraDry (24,762 ) (4,454 ) (36,581 ) (10,588 ) Total loss from operations $ (36,964 ) $ (16,898 ) $ (62,817 ) $ (35,826 ) June 30, December 31, 2019 2018 Assets Breast Products $ 212,234 $ 130,149 miraDry 33,711 38,210 Total assets $ 245,945 $ 168,359 |
Formation and Business of the_2
Formation and Business of the Company (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 07, 2019 | May 07, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Formation And Business Of Company [Line Items] | ||||
Proceeds from the issuance of common stock, net of underwriting discounts, commissions and offering expenses | $ 107.7 | $ 107.6 | ||
Common stock | ||||
Formation And Business Of Company [Line Items] | ||||
Shares issued in follow-on public offering | 20,000,000 | 8,518,519 | ||
Underwritten Follow-On Offering | Common stock | ||||
Formation And Business Of Company [Line Items] | ||||
Shares issued in follow-on public offering | 17,391,305 | 7,407,408 | ||
Public offering price (in dollars per share) | $ 5.75 | $ 13.50 | ||
Additional shares granted to underwriters | 2,608,695 | 1,111,111 | ||
Proceeds from the issuance of common stock, net of underwriting discounts, commissions and offering expenses | $ 107.7 | $ 107.6 | ||
Payment of underwriting discounts and commissions and offering expenses | 6.9 | 6.9 | ||
Offering expenses | $ 0.4 | $ 0.5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Jun. 07, 2019 | Jan. 01, 2019 | May 07, 2018 | Feb. 28, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2018 | Apr. 17, 2018 |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cash and cash equivalents | $ 146,088,000 | $ 86,899,000 | $ 112,619,000 | ||||||
Common stock, shares issued | 49,350,266 | 28,701,494 | |||||||
Proceeds from the issuance of common stock, net of underwriting discounts, commissions and offering expenses | $ 107,700,000 | $ 107,600,000 | |||||||
Right-of-use asset | $ 22,443,000 | ||||||||
Lease, liabilities | $ 22,954,000 | ||||||||
ASU 2016-02 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cumulative effect adjustment | $ 0 | ||||||||
Right-of-use asset | 22,700,000 | ||||||||
Lease, liabilities | $ 22,900,000 | ||||||||
At-The-Market Equity Offering Sales Agreement | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Common stock, shares issued | 0 | ||||||||
Maximum | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Aggregate gross offering price | $ 50,000,000 | ||||||||
March Two Thousand Eighteen Term Loan | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Loan amount outstanding | $ 10,000,000 | $ 10,000,000 |
Revenue (Details 1)
Revenue (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | Jun. 30, 2019 |
Product Replacement | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 20 years |
Maximum | Financial Assistance | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 24 months |
Minimum | Financial Assistance | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 6 months |
Breast Products and Consumable miraDry products | Maximum | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 30 days |
MiraDry Systems | Maximum | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 1 year |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue From Contracts With Customers [Line Items] | |||||
Period for sales return | 6 months | ||||
Allowance for sales returns | $ 7,000 | $ 7,000 | $ 6,000 | ||
Liability for service warranty | 700 | $ 700 | 400 | ||
Revenue, practical expedient, incremental cost of obtaining contract | true | ||||
Revenue, practical expedient, significant financing component | true | ||||
Shipping and handling costs | 7,813 | $ 6,660 | $ 14,287 | $ 12,756 | |
Breast Products | Sales and marketing expense | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Shipping and handling costs | $ 500 | $ 300 | $ 900 | $ 600 | |
Type of Cost, Good or Service [Extensible List] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | |
miraDry | Cost of goods sold | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Shipping and handling costs | $ 200 | $ 100 | $ 300 | $ 200 | |
Type of Cost, Good or Service [Extensible List] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | |
Accrued and Other Current Liabilities | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Short-term obligation | $ 300 | $ 300 | 200 | ||
Warranty Reserve and Other Long-term Liabilities | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Long-term obligation | $ 400 | $ 400 | $ 300 |
Revenue (Schedule of Rollforwar
Revenue (Schedule of Rollforward of Sales Return Liability) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue Recognition [Abstract] | |
Balance as of December 31, 2018 | $ 6,048 |
Addition to reserve for sales activity | 47,178 |
Actual returns | (46,895) |
Change in estimate of sales returns | 689 |
Balance as of June 30, 2019 | $ 7,020 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | Jun. 30, 2019 |
Estimated Dividend Yield | |
Fair Value Measurements | |
Measurement input | 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company's Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Fair value liability | $ 13,140 | $ 13,960 |
Warrants | ||
Fair Value Measurements | ||
Fair value liability | 4 | 113 |
Contingent Consideration Liability | ||
Fair Value Measurements | ||
Fair value liability | 13,136 | 13,847 |
Level 3 | ||
Fair Value Measurements | ||
Fair value liability | 13,140 | 13,960 |
Level 3 | Warrants | ||
Fair Value Measurements | ||
Fair value liability | 4 | 113 |
Level 3 | Contingent Consideration Liability | ||
Fair Value Measurements | ||
Fair value liability | $ 13,136 | $ 13,847 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Aggregate Fair Values of the Company's Common Stock Warrants and Contingent Consideration for which Fair Value is Determined by Level 3 Inputs (Details) - Level 3 - Recurring $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Warrants | |
Fair values of the Company's liabilities determined by Level 3 inputs | |
Balance at beginning of the period | $ 113 |
Change in fair value | (109) |
Balance at the end of the period | 4 |
Contingent Consideration Liability | |
Fair values of the Company's liabilities determined by Level 3 inputs | |
Balance at beginning of the period | 13,847 |
Payments of contingent consideration | (1,000) |
Change in fair value | 289 |
Balance at the end of the period | $ 13,136 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Product Warranty Liability [Line Items] | ||||
Replacement implants and revision surgery financial assistance under limited warranty program | $ 1,646,000 | $ 1,395,000 | $ 1,983,000 | $ 1,642,000 |
Implants occurring prior to May 1, 2018 | ||||
Product Warranty Liability [Line Items] | ||||
Period to claim financial assistance under limited warranty program | 10 years | |||
Implants occurring prior to May 1, 2018 | Maximum | ||||
Product Warranty Liability [Line Items] | ||||
Replacement implants and revision surgery financial assistance under limited warranty program | $ 3,600 | |||
Implants occurring on or after May 1, 2018 | ||||
Product Warranty Liability [Line Items] | ||||
Period to claim financial assistance under limited warranty program | 20 years | |||
Implants occurring on or after May 1, 2018 | Maximum | ||||
Product Warranty Liability [Line Items] | ||||
Replacement implants and revision surgery financial assistance under limited warranty program | $ 5,000 |
Product Warranties - Schedule o
Product Warranties - Schedule of rollforward of the accrued warranties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | ||
Beginning balance | $ 1,395 | $ 1,642 |
Warranty costs incurred during the period | (423) | (231) |
Changes in accrual related to warranties issued during the period | 651 | 568 |
Changes in accrual related to pre-existing warranties | 23 | 4 |
Ending Balance | $ 1,646 | $ 1,983 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Net Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (37,654) | $ (26,484) | $ (18,028) | $ (19,423) | $ (64,138) | $ (37,451) |
Weighted average common shares outstanding, basic and diluted | 34,290,073 | 24,761,117 | 31,709,067 | 22,202,565 | ||
Net loss per share attributable to common stockholders | $ (1.10) | $ (0.73) | $ (2.02) | $ (1.69) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Potentially dilutive securities | ||
Potentially dilutive securities | 1,116,877 | 2,059,213 |
Stock options to purchase common stock | ||
Potentially dilutive securities | ||
Potentially dilutive securities | 1,069,167 | 2,011,503 |
Warrants for the purchase of common stock | ||
Potentially dilutive securities | ||
Potentially dilutive securities | 47,710 | 47,710 |
Balance Sheet Components (Allow
Balance Sheet Components (Allowance) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Allowance for doubtful accounts | $ 3.2 | $ 2.4 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 3,272 | $ 2,147 |
Work in progress | 2,322 | 2,110 |
Finished goods | 22,502 | 18,335 |
Finished goods - right of return | 1,768 | 1,493 |
Inventory, net | $ 29,864 | $ 24,085 |
Balance Sheet Components (PPE)
Balance Sheet Components (PPE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | |
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | $ 6,730 | $ 6,730 | $ 5,033 | |||
Less accumulated depreciation | (3,044) | (3,044) | (2,497) | |||
Property and equipment, net | 3,686 | 3,686 | 2,536 | |||
Depreciation expense | 300 | $ 300 | 600 | $ 600 | ||
Repurchase equipment | $ 2,700 | |||||
Leasehold improvements | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | 418 | 418 | 402 | |||
Manufacturing equipment and toolings | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | 2,979 | 2,979 | 1,928 | |||
Computer equipment | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | 911 | 911 | 682 | |||
Software | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | 1,274 | 1,274 | 1,039 | |||
Office equipment | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | 117 | 117 | 156 | |||
Furniture and fixtures | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | $ 1,031 | $ 1,031 | $ 826 |
Balance Sheet Components (Goodw
Balance Sheet Components (Goodwill and Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill and intangible assets | |||||
Goodwill | $ 26,785 | $ 26,785 | $ 26,785 | ||
Accumulated impairment losses | (21,907) | (21,907) | (14,278) | ||
Goodwill, net | 4,878 | 4,878 | 12,507 | ||
Goodwill impairment charge | 7,629 | ||||
Other intangible assets | |||||
Gross Carrying Amount | 15,503 | 15,503 | 23,003 | ||
Accumulated Amortization | (5,663) | (5,663) | (6,958) | ||
Intangible Assets, net | 9,840 | 9,840 | 16,045 | ||
Indefinite-lived intangible assets | 450 | 450 | 450 | ||
Intangibles amortization expense | 600 | $ 600 | 1,200 | $ 1,200 | |
Estimated amortization expense | |||||
Remainder of 2019 | 1,022 | 1,022 | |||
2020 | 1,554 | 1,554 | |||
2021 | 1,305 | 1,305 | |||
2022 | 1,122 | 1,122 | |||
2023 | 975 | 975 | |||
Thereafter | 3,862 | 3,862 | |||
Total amortization | 9,840 | 9,840 | |||
Trade name | |||||
Other intangible assets | |||||
Indefinite-lived intangible assets | 450 | $ 450 | $ 450 | ||
Acquired FDA non-gel product approval | |||||
Other intangible assets | |||||
Average Amortization Period | 11 years | 11 years | |||
Gross Carrying Amount | 1,713 | $ 1,713 | $ 1,713 | ||
Accumulated Amortization | (1,713) | $ (1,713) | $ (1,713) | ||
Customer relationships | |||||
Other intangible assets | |||||
Average Amortization Period | 11 years | 11 years | |||
Gross Carrying Amount | 9,540 | $ 9,540 | $ 11,240 | ||
Accumulated Amortization | (2,978) | (2,978) | (3,486) | ||
Intangible Assets, net | 6,562 | 6,562 | $ 7,754 | ||
Goodwill impairment charge | 400 | $ 400 | |||
Trade name | |||||
Other intangible assets | |||||
Average Amortization Period | 14 years | 14 years | |||
Gross Carrying Amount | 2,000 | $ 2,000 | $ 5,800 | ||
Accumulated Amortization | (222) | (222) | (541) | ||
Intangible Assets, net | 1,778 | 1,778 | $ 5,259 | ||
Goodwill impairment charge | 3,300 | $ 3,300 | |||
Developed technology | |||||
Other intangible assets | |||||
Average Amortization Period | 13 years | 15 years | |||
Gross Carrying Amount | 1,500 | $ 1,500 | $ 3,000 | ||
Accumulated Amortization | (338) | ||||
Intangible Assets, net | 1,500 | 1,500 | $ 2,662 | ||
Goodwill impairment charge | 1,000 | 1,000 | |||
Distributor relationships | |||||
Other intangible assets | |||||
Average Amortization Period | 9 years | ||||
Gross Carrying Amount | $ 500 | ||||
Accumulated Amortization | (130) | ||||
Intangible Assets, net | $ 370 | ||||
Goodwill impairment charge | 300 | $ 300 | |||
Regulatory approvals | |||||
Other intangible assets | |||||
Average Amortization Period | 1 year | 1 year | |||
Gross Carrying Amount | 670 | $ 670 | $ 670 | ||
Accumulated Amortization | (670) | $ (670) | $ (670) | ||
Non-compete agreement | |||||
Other intangible assets | |||||
Average Amortization Period | 2 years | 2 years | |||
Gross Carrying Amount | 80 | $ 80 | $ 80 | ||
Accumulated Amortization | (80) | (80) | (80) | ||
Breast Products | |||||
Goodwill and intangible assets | |||||
Goodwill | 19,156 | 19,156 | 19,156 | ||
Accumulated impairment losses | (14,278) | (14,278) | (14,278) | ||
Goodwill, net | 4,878 | 4,878 | 4,878 | ||
miraDry | |||||
Goodwill and intangible assets | |||||
Goodwill | 7,629 | 7,629 | 7,629 | ||
Accumulated impairment losses | (7,629) | (7,629) | |||
Goodwill, net | $ 7,629 | ||||
Goodwill impairment charge | $ 7,600 | $ 7,600 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued and other current liabilities | ||
Payroll and related expenses | $ 4,927 | $ 6,466 |
Accrued commissions | 3,606 | 5,321 |
Accrued equipment | 721 | 18 |
Deferred and contingent consideration, current portion | 13,060 | 7,645 |
Audit, consulting and legal fees | 2,044 | 703 |
Accrued sales and marketing expenses | 1,642 | $ 1,374 |
Operating lease liabilities | $ 4,896 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | sien:AccruedAndOtherCurrentLiabilitiesMember | sien:AccruedAndOtherCurrentLiabilitiesMember |
Finance lease liabilities | $ 42 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | sien:AccruedAndOtherCurrentLiabilitiesMember | sien:AccruedAndOtherCurrentLiabilitiesMember |
Other | $ 5,342 | $ 6,170 |
Total | $ 36,280 | $ 27,697 |
Leases (Details)
Leases (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019OperatingLease | Dec. 31, 2018USD ($) | |
Lessee Disclosure [Abstract] | ||
Renewal term of lease | 5 years | |
Number of operating lease, renewable | OperatingLease | 1 | |
Purchase obligation under manufacturing contract for 2019 | $ 21.6 | |
Purchase obligation under manufacturing contract for 2020 | 21.6 | |
Purchase obligation under manufacturing contract for 2021 | 21.6 | |
Purchase obligation under manufacturing contract for 2022 | 21.6 | |
Purchase obligation under manufacturing contract for 2023 | $ 21.6 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee Lease Description [Line Items] | ||
Total operating lease cost | $ 1,634 | $ 3,261 |
Finance lease cost | ||
Total finance lease cost | 12 | 22 |
Total lease cost | 3,943 | 7,878 |
Inventory | ||
Lessee Lease Description [Line Items] | ||
Total operating lease cost | 1,248 | 2,495 |
Finance lease cost | ||
Variable lease cost | 2,297 | 4,595 |
Operating Expenses | ||
Lessee Lease Description [Line Items] | ||
Total operating lease cost | 386 | 766 |
Finance lease cost | ||
Amortization of right-of-use assets | 11 | 20 |
Other Income (Expense), Net | ||
Finance lease cost | ||
Interest on lease liabilities | $ 1 | $ 2 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating and Finance Leases (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflows from operating leases | $ 2,954 |
Operating cash outflows from finance leases | 22 |
Right-of-use assets obtained in exchange for new lease obligations: | |
Operating leases | 24,779 |
Finance leases | $ 119 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets And Liabilities Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 22,443 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | |
Finance lease right-of-use assets | $ 100 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | |
Total right-of use assets | $ 22,543 | |
Operating lease liabilities | $ 4,896 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | sien:AccruedAndOtherCurrentLiabilitiesMember | sien:AccruedAndOtherCurrentLiabilitiesMember |
Finance lease liabilities | $ 42 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | sien:AccruedAndOtherCurrentLiabilitiesMember | sien:AccruedAndOtherCurrentLiabilitiesMember |
Operating lease liabilities | $ 18,058 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | sien:WarrantyReserveAndOtherLongTermLiabilitiesMember | |
Finance lease liabilities | $ 55 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | sien:WarrantyReserveAndOtherLongTermLiabilitiesMember | |
Total lease liabilities | $ 23,051 | |
Weighted average remaining lease term (years) | ||
Operating leases | 4 years | |
Finance leases | 2 years | |
Weighted average discount rate | ||
Operating leases | 8.08% | |
Finance leases | 4.21% |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
Operating leases, Remainder of 2019 | $ 3,303 |
Operating leases, 2020 | 6,639 |
Operating leases, 2021 | 6,672 |
Operating leases, 2022 | 6,405 |
Operating leases, 2023 | 3,083 |
Operating leases, 2024 and thereafter | 964 |
Total operating lease payments | 27,066 |
Less imputed interest, Operating leases | 4,112 |
Total operating lease liabilities | 22,954 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
Finance leases, Remainder of 2019 | 23 |
Finance leases, 2020 | 43 |
Finance leases, 2021 | 36 |
Total finance lease payments | 102 |
Less imputed interest, Finance leases | 5 |
Total finance lease liabilities | 97 |
Lessee Lease Liability Payments Due [Abstract] | |
Remainder of 2019 | 3,326 |
2020 | 6,682 |
2021 | 6,708 |
2022 | 6,405 |
2023 | 3,083 |
2024 and thereafter | 964 |
Total lease payments | 27,168 |
Less imputed interest | 4,117 |
Total lease liabilities | $ 23,051 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Lessee Disclosure [Abstract] | |
2019 | $ 1,325 |
2020 | 1,134 |
2021 | 1,060 |
2022 | 947 |
2023 and thereafter | 1,557 |
Total | $ 6,023 |
Long-Term Debt and Revolving _3
Long-Term Debt and Revolving Loan (Details) - USD ($) | Apr. 18, 2018 | Jul. 25, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Apr. 30, 2018 | Apr. 17, 2018 |
Line Of Credit Facility [Line Items] | ||||||||
Credit and security agreement entered date | Jul. 25, 2017 | |||||||
Amortization of debt issuance costs | $ 43,000 | $ 34,000 | $ 100,000 | $ 100,000 | ||||
Additional interest (as a percent) | 5.00% | |||||||
Term Loan Credit Agreement | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Amount funded by MidCap under agreement | $ 25,000,000 | |||||||
Lines of credit facility available date | Apr. 30, 2018 | Mar. 31, 2018 | ||||||
Loan amount outstanding | $ 40,000,000 | 35,000,000 | 35,000,000 | |||||
Debt scheduled maturity date | Dec. 1, 2021 | |||||||
Origination fee (as a percent) | 0.50% | |||||||
Unamortized debt issuance costs on term loan, current portion | 100,000 | 100,000 | ||||||
Unamortized debt issuance costs on term loan, long-term portion | 100,000 | $ 100,000 | ||||||
Term Loan Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate basis (as a percent) | 7.50% | |||||||
Debt Instrument Reference Rate | 2.44% | |||||||
Term Loan Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate floor | 1.00% | |||||||
March Two Thousand Eighteen Term Loan | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 10,000,000 | |||||||
Loan amount outstanding | $ 10,000,000 | $ 10,000,000 | ||||||
Additional Term Loan | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 5,000,000 | |||||||
Minimum revenue required to satisfy additional term loan facility | 75,000,000 | |||||||
Revolving Credit Agreement | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Loan amount outstanding | $ 10,000,000 | 4,300,000 | $ 4,300,000 | |||||
Borrowing base of accounts receivable (as a percent) | 85.00% | |||||||
Borrowing base of finished goods inventory (as a percent) | 40.00% | |||||||
Debt scheduled maturity date | Dec. 1, 2021 | |||||||
Origination fee (as a percent) | 0.50% | |||||||
Annual collateral management fee (as a percent) | 0.50% | |||||||
Annual unused line fee of average unused portion (as a percent) | 0.50% | |||||||
Revolving Credit Agreement | Other Long-Term Assets | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Unamortized debt issuance costs on term loan, long-term portion | $ 100,000 | $ 100,000 | ||||||
Revolving Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate basis (as a percent) | 4.50% | |||||||
Revolving Credit Agreement | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Borrowing base availability from finished goods inventory (as a percent) | 20.00% | |||||||
Revolving Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate floor | 1.00% |
Long-Term Debt and Revolving _4
Long-Term Debt and Revolving Loan (Schedule of Future Principal Payments for Outstanding Term Loans) (Details) - Term Loans $ in Thousands | Jun. 30, 2019USD ($) |
Line Of Credit Facility [Line Items] | |
Remainder of 2019 | $ 7,000 |
2020 | 14,000 |
2021 | 14,000 |
Total | $ 35,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Stock other disclosures | ||
Common and preferred stock, shares authorized | 210,000,000 | 210,000,000 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stockholders' Equity (Warrants)
Stockholders' Equity (Warrants) (Details) - $ / shares | Jan. 17, 2013 | Jun. 30, 2014 | Jun. 30, 2019 |
Common Stock Warrants | |||
Aggregate number of common shares to purchase | 47,710 | ||
Oxford Finance, LLC | |||
Common Stock Warrants | |||
Exercise price (in dollars per share) | $ 14.671 | $ 14.671 | |
Tranche A, B and C loans | Oxford Finance, LLC | |||
Common Stock Warrants | |||
Warrant term | 7 years | ||
Percentage of term loan amounts | 3.00% | ||
Tranche D term loan | Oxford Finance, LLC | |||
Common Stock Warrants | |||
Warrant term | 7 years | ||
Percentage of term loan amounts | 2.50% |
Stockholders' Equity (Options)
Stockholders' Equity (Options) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Nov. 03, 2014 | Apr. 30, 2007 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for future grants | 761,344 | 761,344 | |||||
Stock options | |||||||
Number of options | |||||||
Balance at the beginning of period (in shares) | 1,953,334 | ||||||
Options exercised (in shares) | (45,453) | ||||||
Balance at the end of the period (in shares) | 1,907,881 | 1,907,881 | 1,953,334 | ||||
Weighted average exercise price | |||||||
Balance at the beginning of period (in dollars per share) | $ 7.42 | ||||||
Options exercised (in dollars per share) | 2.34 | ||||||
Balance at the end of period (in dollars per share) | $ 7.54 | $ 7.54 | $ 7.42 | ||||
Additional information | |||||||
Weighted average remaining contractual term | 5 years 11 months 15 days | 6 years 3 months 18 days | |||||
Stock-based compensation expense | $ 0.1 | $ 0.4 | $ 0.4 | $ 0.8 | |||
Unrecognized compensation costs (in dollars) | $ 0.3 | $ 0.3 | |||||
Weighted average period over which unrecognized compensation costs are expected to be recognized | 1 year | ||||||
2007 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock initially reserved for issuance (in shares) | 1,690,448 | ||||||
2014 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock initially reserved for issuance (in shares) | 1,027,500 | ||||||
Number of shares available for future grants | 475,954 | 475,954 | |||||
Inducement Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for future grants | 320,538 | 320,538 | |||||
Number of shares awarded | 1,108,278 | ||||||
Grant period of stock awards | 10 years | ||||||
Number of additional years of requisite service period | 3 years | ||||||
Vesting period | 1 year | ||||||
Inducement Plan | On the first anniversary | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Inducement Plan | Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Purchase price of awards expressed as a percentage of fair value of shares on the date of grant | 100.00% | ||||||
Percentage of possible payouts of the target award | 0.00% | ||||||
Inducement Plan | Minimum | Individual options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Inducement Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of possible payouts of the target award | 100.00% | ||||||
2007 Plan and 2014 Plan | Stock options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Grant period of stock awards | 10 years | ||||||
2007 Plan and 2014 Plan | Stock options | Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Purchase price of awards expressed as a percentage of fair value of shares on the date of grant | 100.00% | ||||||
Percentage of voting power owned by shareholder | 10.00% | 10.00% | |||||
2007 Plan and 2014 Plan | Stock options | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Purchase price of awards expressed as a percentage of fair value of shares on the date of grant | 110.00% |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock) (Details) - Restricted stock units - 2014 Plan - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' Equity, other disclosures | ||||
Requisite service period, annually | 3 years | |||
Stock-based compensation expense | $ 2.7 | $ 2.6 | $ 6 | $ 4.6 |
Unrecognized compensation costs (in dollars) | $ 20.4 | $ 20.4 | ||
Weighted average period over which unrecognized compensation costs are expected to be recognized | 2 years | |||
Number of shares | ||||
Balance at beginning of the period | 2,141,350 | |||
Granted | 1,198,845 | |||
Vested | (759,699) | |||
Forfeited | (182,317) | |||
Balance at end of the period | 2,398,179 | 2,398,179 | ||
Weighted average grant date fair value | ||||
Balance at beginning of the period | $ 13.27 | |||
Granted | 8.21 | |||
Vested | 11.77 | |||
Forfeited | 16.22 | |||
Balance at end of the period | $ 10.99 | $ 10.99 |
Stockholders' Equity (Stock Pur
Stockholders' Equity (Stock Purchase) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares available for future grants | 761,344 | 761,344 | |||
2014 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Purchase period of offering | 6 months | ||||
Rate of purchase price of stock on fair value (as a percent) | 85.00% | ||||
Purchases under the award | 68,899 | ||||
Weighted Average purchase price | $ 9.91 | $ 9.91 | |||
Stock-based compensation expense | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.3 | |
Incremental compensation cost | $ 0.4 | ||||
2014 Employee Stock Purchase Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Discount rate on the value of shares through payroll deductions (as a percent) | 15.00% | ||||
Expiration period of each offering | 27 months | ||||
Number of shares reserved for future issuance | 255,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) | 6 Months Ended |
Jun. 30, 2019USD ($)Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 2 |
Segments unallocated expenses | $ | $ 0 |
Segment Information - Summary o
Segment Information - Summary of Net Sales and Net Operating Loss by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Total net sales | $ 20,525 | $ 17,554 | $ 38,077 | $ 32,229 | |
Total loss from operations | (36,964) | (16,898) | (62,817) | (35,826) | |
Total assets | 245,945 | 245,945 | $ 168,359 | ||
Breast Products | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 11,194 | 9,412 | 20,944 | 17,954 | |
Total loss from operations | (12,202) | (12,444) | (26,236) | (25,238) | |
Total assets | 212,234 | 212,234 | 130,149 | ||
miraDry | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 9,331 | 8,142 | 17,133 | 14,275 | |
Total loss from operations | (24,762) | $ (4,454) | (36,581) | $ (10,588) | |
Total assets | $ 33,711 | $ 33,711 | $ 38,210 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Nov. 11, 2017 | Mar. 31, 2019 | Dec. 31, 2018 |
Contingencies | |||
Loss contingency paid | $ 410 | ||
miraDry Class Action Litigation | |||
Contingencies | |||
Amount of Defendants (and/or their indemnitors and/or insurers) agreed to pay settlement consideration | $ 400 | ||
Legal settlement | 600 | ||
Loss contingency paid | $ 400 | ||
Legal settlement paid | $ 400 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | Jul. 01, 2019 | Jul. 25, 2017 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||
Credit and security agreement entered date | Jul. 25, 2017 | ||
Additional interest (as a percent) | 5.00% | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Investment company, contributed capital to committed capital ratio | 65.00% | ||
Restated Term Loan Credit Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Credit and security agreement entered date | Jul. 1, 2019 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 35,000,000 | ||
Loan amount outstanding | $ 40,000,000 | ||
Debt scheduled maturity date | Jul. 1, 2024 | ||
Repayment of outstanding balance related to term loans | $ 35,000,000 | ||
Restated Term Loan Credit Agreement | London Interbank Offered Rate (LIBOR) | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Spread on variable rate basis (as a percent) | 7.50% | ||
Restated Term Loan Credit Agreement | Scenario, Forecast | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 10,000,000 | ||
Additional Term Loan | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 5,000,000 | ||
Minimum revenue required to satisfy additional term loan facility | $ 75,000,000 | ||
Additional Term Loan | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 5,000,000 | ||
Minimum revenue required to satisfy additional term loan facility | 100,000,000 | ||
Additional Term Loan | Scenario, Forecast | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 15,000,000 | ||
Restated Credit and Security Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Loan amount outstanding | $ 10,000,000 | ||
Debt scheduled maturity date | Jul. 1, 2024 | ||
Borrowing base of accounts receivable (as a percent) | 85.00% | ||
Borrowing base of finished goods inventory (as a percent) | 40.00% | ||
Additional interest (as a percent) | 5.00% | ||
Restated Credit and Security Agreement | Subsequent Event | Maximum | |||
Subsequent Event [Line Items] | |||
Borrowing base availability from finished goods inventory (as a percent) | 20.00% | ||
Restated Credit and Security Agreement | London Interbank Offered Rate (LIBOR) | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Spread on variable rate basis (as a percent) | 4.50% | ||
Restated Revolving Loan | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Loan amount outstanding | $ 4,300,000 |